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ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION

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ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION

Act No. 5490, Dec. 31, 1997

Amended by Act No. 5982, May 24, 1999

Act No. 6018, Sep. 7, 1999

Act No. 6256, Jan. 28, 2000

Act No. 6429, Mar. 28, 2001

Act No. 6987, Oct. 4, 2003

Act No. 7428, Mar. 31, 2005

Act No. 7796, Dec. 29, 2005

Act No. 7988, Sep. 27, 2006

Act No. 8863, Feb. 29, 2008

CHAPTER GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to contribute to the growth of the national economy by promoting the advancement of the financial industry and the stability of financial markets, by establishing sound credit order and fair financial transaction practices, by protecting financial consumers, such as depositors and investors, by the establishment of the Financial Services Commission and the Financial Supervisory Service. Article 2 (Maintenance of Fairness, etc.)

The Financial Services Commission and the Financial Supervisory Service shall endeavor to maintain fairness and secure transparency, and shall not check the autonomy of financial institutions in performing their affairs.

CHAPTER FINANCIAL SERVICES

COMMISSION

SECTION 1 Establishment and Composition

of Financial Services Commission

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 2

Article 3 (Establishment and Status of Financial Services Commission) (1) The Financial Services Commission shall be established to perform duties concerning financial policy, supervision of the soundness of foreign exchange business management institutions, and financial supervision under the jurisdiction of the Prime Minister.

(2) The Financial Services Commission as the central administrative agency under Article 2 of the Government Organization Act shall perform duties under its authority independently.

Article 4 (Composition of Financial Services Commission) (1) The Financial Services Commission shall be composed of nine com- missioners, including the chairperson, one vice chairperson and the commissioners of the following subparagraphs:

1. Vice Minister of Strategy and Finance;

2. Governor of the Financial Supervisory Service;

3. President of the Korea Deposit Insurance Corporation;

4. Deputy Governor of the Bank of Korea;

5. Two financial experts recommended by the Chairperson of the Financial Services Commission;

6. One representative of the business community recommended by the Chairperson of the Korea Chamber of Commerce and Industry; and

7. Deleted. (2) The Chairperson of the Financial Services Commission (hereafter re- ferred to as the "Chairperson" in Sections 1 and 2 of this Chapter) shall be appointed by the President of the Republic of Korea on the recom- mendation of the Prime Minister, and the vice chairperson of the Financial Services Commission (hereafter referred to as the "vice chairperson" in Sections 1 and 2 of this Chapter) shall be appointed by the President of the Republic of Korea on the recommendation of the Chairperson. (3) The commissioners referred to in paragraph (1) 5 and 6 shall be ap- pointed by the President of the Republic of Korea on the recommendation of the recommending agency concerned as prescribed by Presidential Decree.

(4) The Chairperson and vice chairperson shall be appointed to the post of state public officials in political service, the commissioners referred to ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 3

in paragraph (1) 5 shall be appointed to the post of public officials in extraordinary services belonging to the Senior Civil Service, and the commis- sioner referred to in paragraph (1) 6 shall be a non-standing commissioner. (5) The Chairperson, vice chairperson, commissioners referred to in para- graph (1) 5, and director of the secretariat under Article 15 shall become government delegates despite Article 9 of the Government Organization Act.

(6) The Chairperson may attend and speak at the State Council.

Article 5 (Chairperson)

(1) The Chairperson shall represent the Financial Services Commission, and preside at meetings and control the affairs of the Financial Services Commission. (2) When the Chairperson is unable to perform his/her duties due to any unavoidable reason, the vice chairperson shall perform such duties for the Chairperson, and when both the Chairperson and the vice chairperson are unable to perform their duties due to unavoidable reasons, the commis- sioner designated in advance by the Financial Services Commission shall perform such duties for the Chairperson.

Article 6 (Term of Office of Commissioner, etc.)

(1) The term of office of the Chairperson, the vice chairperson and the commissioners in Article 4 (1) 5 and 6 (hereinafter referred to as the "appointed commissioners") shall be three years and they may be re- appointed only once. (2) On the occurrence of a vacancy in the office of an appointed commis- sioner, a new commissioner shall be appointed to fill such vacancy and his/her term of office shall be reckoned from the appointment date. Article 7 (Prohibition on Political Activities)

In spite of Article 22 of the Political Parties Act, no appointed commissioner shall join any political party nor participate in any political campaign.

Article 8 (Disqualification of Commissioners)

No person who falls under any of the following subparagraphs shall become an appointed commissioner:

1. A person who is not Korean;

2. An incompetent or quasi-incompetent person; ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 4

3. A person who has been declared bankrupt and is not yet reinstated;

4. A person who is subject to a suspended sentence of imprisonment without labor or heavier punishment;

5. A person in whose case five years have not passed since his/her imprison- ment without labor or a heavier punishment was completely executed or waived (including a case where the execution is regarded completed);

6. A person in whose case five years have not passed since his/her punish- ment of a fine was imposed under this Act or other finance-related Acts and subordinate statutes (including foreign finance-related Acts and subordinate statutes); and

7. A person in whose case five years have not yet passed since he/she was removed or dismissed from his/her office under this Act or other finance-related Acts and subordinate statutes (including foreign fi- nance-related Acts and subordinate statutes).

Article 9 (Prohibition from Holding Office Concurrently, etc.) No Chairperson, vice chairperson, and commissioners referred to in Article 4 (1) 5 shall neither, while holding office, concurrently hold office in any of the following subparagraphs nor operate a profit-making business:

1. Office of member of the National Assembly or member of a local council;

2. Office of state public official or local public official;

3. Office of executive or staff of organization subject to supervision under this Act and other Acts and subordinate statutes; and

4. Any other office with remuneration. Article 10 (Guarantee of Status of Commissioner, etc.) (1) No appointed commissioner shall be dismissed from office against his/her own will during the term of office except in cases where he/she falls under any of the following subparagraphs:

1. Where falling under any subparagraph of Article 8;

2. Where he/she becomes incapable of performing his/her duties due to any mental or physical disability; and

3. Where he/she becomes unsuitable to perform the duties of his/her office as commissioner of the Financial Services Commission in violation of official obligations under this Act.

(2) Where a commissioner is dismissed upon a ground referred to in para- graph (1), an action conducted as a commissioner prior to his/her dismissal ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 5

shall not lose its validity.

SECTION 2 Operation of Financial Services

Commission

Article 11 (Meetings)

(1) The Chairperson shall call a meeting of the Financial Services Commission at the request of not less than three commissioners: Provided, That the Chairperson may call a meeting by himself/herself.

(2) The Financial Services Commission shall pass resolutions with the attendance of a majority of the commissioners enrolled and the approval of a majority of those present, except in cases where express provisions exist in this Act or other Acts with respect to the resolution method of the meeting. (3) A commissioner of the Financial Services Commission may present a Bill in the Financial Services Commission with the approval of not less than three commissioners: Provided, That the Chairperson may present a Bill in the Financial Supervisory Commission by himself/herself.

(4) A commissioner shall be excluded from deliberation and resolution on matters falling under any of the following subparagraphs:

1. Matters in which he/she has a direct interest;

2. Matters in which a spouse, a person within the fourth degree of con- sanguinity and a person within the second degree of marriage relation- ship, or a juristic person to which he/she belongs have any interest; and

3. Matters concerning the budget, final accounts and change of the articles of incorporation of the institution concerned in cases of the commissioners referred to in Article 4 (1) 2 and 3.

(5) Where it is difficult for a person concerned to expect fairness in the deliberation and resolution from a commissioner, the person concerned can file an application for challenge. The Chairperson shall make decision on the application for challenge without resolution of the Financial Services Commission. (6) Where a commissioner himself/herself falls under any subparagraph of paragraph (4) or the reason referred to in paragraph (5), the commissioner himself/herself may withdraw from the deliberation and resolution of the ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 6

matter. (7) The Governor of the Financial Supervisory Service, within the scope of duties of the Financial Supervisory Service prescribed in Article 37, may request the Chairperson to present a necessary bill on the agenda. In this case, the Chairperson shall comply with the request as far as there is no particular reason to the contrary.

Article 12 (Preparation of Letter of Resolution, etc.) (1) Where the Financial Services Commission passes a resolution, it shall prepare a letter of resolution, and the commissioners who participated in such resolution shall print their names and affix their seals to, or sign, the letter of resolution. (2) The Financial Services Commission shall take minutes and open them to the public as prescribed by the Financial Services Commission.

Article 13 (Consideration of Opinions)

The Financial Services Commission may, when acknowledged necessary for deliberation, consider the opinions from the deputy governors and assis- tant governors of the Financial Supervisory Services, and other related experts, etc. under the provisions of Article 29 (1).

Article 14 (Emergency Measures)

(1) When it is pressed for time to call a meeting of the Financial Services Commission in cases where emergency measures are required to address domestic troubles, external threats and natural disasters, or for an major financial or economic crisis, the Chairperson may take necessary measures within the authority of the Financial Services Commission.

(2) When the Chairperson has taken necessary measures referred to in paragraph (1), he/she shall, without delay, call a meeting of the Financial Services Commission and report the details thereof.

(3) The Financial Services Commission may confirm, amend or suspend the measures referred to in paragraph (1).

Article 15 (Establishment of Secretariat, etc.)

(1) The Financial Services Commission shall have a secretariat to manage the affairs of the Financial Services Commission, and necessary matters ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 7

with respect to the organization and strength of the Financial Services Commission shall be prescribed by Presidential Decree, except matters provided for in this Act. (2) Deleted.

(3) The Chairperson shall take the overall control of the budgets and other administrative affairs of the Financial Services Commission and of the institutions belonging to the Financial Services Commission (hereinafter referred to as the "institutions belonging to the Commission") under this Act and other Acts and subordinate statutes.

Article 16 (Operation, etc.)

Necessary matters for the operation, etc. of the Financial Services Commission shall be prescribed by the Rules of the Financial Services Commission, except those provided for in this Act and other Acts and sub- ordinate statues. SECTION 3 Affairs, etc. belonging to Financial Services Commission

Article 17 (Affairs belonging to Financial Services Commission) The affairs belonging to the Financial Services Commission are as set forth under each of the following subparagraph:

1. Matters concerning policies and systems on finance;

2. Matters concerning the supervision, inspection and sanctions of financial institutions;

3. Matters concerning authorization and permission of establishment, merger, conversion, business transfer and taking over, and business administration of the financial institutions;

4. Matters concerning the management, supervision and surveillance of capital markets;

5. Matters concerning the creation and development of a finance center;

6. Matters concerning the establishment, amendment and abrogation of Acts and subordinate statutes, and provisions related to the matters referred to in subparagraphs 1 through 5;

7. Matters concerning negotiations between two parties and among the multiple-parties and international cooperation on the supervision of soundness of finance and foreign exchange business management in- stitutions;

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 8

8. Matters concerning the supervision of soundness of foreign exchange business management institutions; and

9. Other matters prescribed by other Acts and subordinate statutes as belonging to the Financial Services Commission.

[This Article Wholly Amended by Act No. 8863, Feb. 29, 2008] Article 18 (Guidance and Supervision on Financial Supervisory Service) The Financial Services Commission shall guide and supervise the affairs, operation, and administration of the Financial Supervisory Service under the provisions of this Act and other Acts and subordinate statutes, and shall deliberate and resolve the matters under the following subparagraphs:

1. Approval for amendment of modification of the articles of incorporation of the Financial Supervisory Service;

2. Deleted;

3. Approval of the budgets and final accounts of the Financial Supervisory Service;

4. Deleted; and

5. Other matters necessary for the guidance and supervision of the Financial Supervisory Service.

SECTION 4 Securities and Futures Commission

Article 19 (Establishment of Securities and Futures Commission) The Securities and Futures Commission shall be established under the Financial Services Commission to perform the affairs under the following subparagraphs under the provisions of this Act and other Acts and sub- ordinate statutes:

1. Investigation of unfair trade in the capital market;

2. Affairs concerning business accounting standards and accounting super- vision;

3. Prior deliberation on important matters related to the management, supervision and surveillance of the capital market, among the affairs of the Financial Services Commission;

4. Affairs entrusted by the Financial Services Commission for the manage- ment, supervision and surveillance of the capital market; and

5. Other affairs granted to the Securities and Futures Commission under other Acts and subordinate statutes.

Article 20 (Composition, etc. of Securities and Futures Commission) ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 9

(1) The Securities and Futures Commission shall be comprised of five commissioners including, one chairperson, one of whom, excluding the chair- person, shall be a standing commissioner.

(2) The vice chairperson of the Financial Services Commission shall con- currently hold office as the chairperson of the Securities and Futures Commission, and commissioners of the Securities and Futures Commission shall be appointed by the President of the Republic of Korea on the recom- mendation of the Chairperson of the Financial Services Commission from among the persons falling under any of the following subparagraphs:

1. A person who is a public official of Grade or higher, experienced in the fields of finance, securities, futures or accounting, or has been a public official in general services belonging to the Senior Civil Service;

2. A person who has majored in law, economics, business administration, or accounting in the university and has served in the university or in an approved research institution as associate professor or higher, or has held an office corresponding thereto for at least 15 years; and

3. Any other person who has extensive knowledge and experience in finance, securities, futures, or accounting.

(3) The standing commissioner who is not the chairperson of the Securities and Futures Commission shall be appointed to the post of a public official in extraordinary services belonging to the Senior Civil Service.

(4) When the chairperson of the Securities and Futures Commission is unable to perform his/her duties due to unavoidable reasons, the standing commissioner shall perform the duties for the chairperson, and when both the chairperson and the standing commissioner are unable to perform their duties due to unavoidable reasons, a commissioner designated in advance by the Securities and Futures Commission shall perform the duties for the chairperson.

(5) The term of office of commissioners of the Securities and Futures Commission, excluding the chairperson, shall be three years, and they may be reappointed only once.

(6) The provisions of Articles 6 (2) and 7 through 10 shall apply mutatis mutandis to the Securities and Futures Commission. Article 21 (Meeting, etc.)

(1) The chairperson of the Securities and Futures Commission shall call a meeting of the Securities and Futures Commission at the request of ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 10

two commissioners or more: Provided, That the chairperson may call a meeting by himself/herself.

(2) The Securities and Futures Commission shall pass resolutions at meet- ings by approval of three commissioners or more.

(3) Articles 11 (4) 1 and 2, 11 (5) and (6), 12 and 13 shall apply mutatis mutandis to the Securities and Futures Commission. In this case, the term "Financial Services Commission" in Articles 11 (5), 12 and 13 shall be regarded as the "Securities and Futures Commission."

Article 22 (Organization, Rules, etc.)

(1) Necessary matters for the organization of the Securities and Futures Commission, except those provided for in this Act, shall be prescribed by the Rules of the Financial Services Commission.

(2) Necessary matters for the operation, etc. of the Securities and Futures Commission, except those provided for in this Act and other Acts and sub- ordinate statutes, shall be prescribed by the Rules. (3) The Rules referred to in paragraph (2) shall be established with the approval of the Financial Services Commission. The same shall also apply in cases of the amendment thereto. Article 23 (Guidance and Supervision of Financial Supervisory Service) The Securities and Futures Commission shall guide and supervise the Financial Supervisory Service with respect to the affairs referred to in each subparagraph of Article 19. CHAPTER FINANCIAL SUPERVISORY

SERVICE

SECTION 1 Common Provisions

Article 24 (Establishment of Financial Supervisory Service) (1) The Financial Supervisory Service shall be established in order to conduct the inspection and supervision on financial institutions under the guidance and supervision of the Financial Services Commission or the Securities and Futures Commission. (2) The Financial Supervisory Service shall be a non-capital special purpose corporation.

Article 25 (Office)

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(1) The Financial Supervisory Service shall have its main office in Seoul Special Metropolitan City.

(2) The Financial Supervisory Service may, as prescribed by the articles of incorporation, have branch offices or local offices in places where needed. Article 26 (Articles of Incorporation)

(1) The matters falling under each of the following subparagraphs shall be entered in the articles of incorporation of the Financial Supervisory Service:

1. Purpose;

2. Name;

3. Matters concerning office;

4. Matters concerning staff;

5. Matters concerning affairs and execution thereof;

6. Matters concerning budget and accounting;

7. Methods of public notice;

8. Matters concerning modification of the articles of incorporation; and

9. Other matters prescribed by Presidential Decree. (2) The Financial Supervisory Service shall change the articles of incorpora- tion with the approval of the Financial Services Commission.

Article 27 (Registration)

(1) The Financial Supervisory Service shall be registered as prescribed by Presidential Decree.

(2) The Financial Supervisory Service shall be established by the registra- tion of incorporation at the place of its main office. (3) With respect to the matters required to be registered under paragraph (1), they shall not oppose any third party until such registration has been completed.

Article 28 (Prohibition on Use of Similar Name)

No person, other than the Financial Supervisory Service, shall use the Financial Supervisory Service as its name or any similar name thereto. SECTION 2 Governor, Deputy Governor, Assistant

Governor, Auditor, and Staff

Article 29 (Executives, etc.)

(1) The Financial Supervisory Service shall have the Governor, four deputy governors or less, nine assistant governors or less, and one auditor. ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 12

(2) The Governor of the Financial Supervisory Service (hereinafter referred to as the "Governor") shall be appointed by the President of the Republic of Korea on the recommendation of the Chairperson of the Financial Services Commission through the resolution of the Financial Services Commission.

(3) A deputy governor of the Financial Supervisory Service (hereinafter referred to as a "deputy governor") shall be appointed by the Financial Services Commission on the recommendation of the Governor, and an assis- tant governor of the Financial Supervisory Service (hereinafter referred to as an "assistant governor") shall be appointed by the Governor.

(4) The auditor shall be appointed by the President of the Republic of Korea on the recommendation of the Chairperson of the Financial Services Commission upon the resolution of the Financial Services Commission.

(5) The term of office of the Governor, deputy governor, assistant governor and auditor shall be three years and they may be reappointed only once.

(6) On the occurrence of a vacancy in the office of the Governor, deputy governor, assistant governor and auditor, a new person shall be appointed to fill the vacancy and the term of office shall be reckoned from the date of appointment. Article 30 (Duties)

(1) The Governor shall represent the Financial Supervisory Service and shall have general control over the affairs of the Financial Supervisory Service.

(2) When the Governor is unable to perform his/her duties due to unavoid- able reasons, the deputy governor under the order of precedence prescribed by the articles of incorporation of the Financial Supervisory Service shall perform the duties on behalf of the Governor.

(3) The deputy governors shall assist the Governor and take partial charge of the affairs of the Financial Supervisory Service, and the assistant gover- nors shall assist the Governor and deputy governors and take partial charge of the affairs of the Financial Supervisory Service. (4) The auditor shall inspect and audit the affairs and accounting of the Financial Supervisory Service.

Article 31 (Restriction on Representative Authority) With respect to the matters in which the interests of the Governor conflict ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 13

with those of the Financial Supervisory Service, the deputy governor acting in the order of precedence prescribed by the articles of incorporation of the Financial Supervisory Service shall represent the Financial Supervisory Service. Article 32 (Dismissal of Governor, etc.)

(1) Where the Governor and the auditor fall under any of the following subparagraphs, the President of the Republic of Korea shall dismiss them on the recommendation of the Chairperson of the Financial Services Commission upon the resolution of the Financial Services Commission:

1. Where he/she has been declared bankrupt;

2. Where he/she has been sentenced to imprisonment without labor or to heavier punishment, or to a fine or heavier punishment under this Act or other finance-related Acts and subordinate statutes (including foreign finance-related Acts and subordinate statutes);

3. Where it has become significantly difficult for him/her to perform his/her duties due to his/her mental or physical disabilities; and

4. Where he/she has violated this Act, or the orders thereunder or the articles of incorporation.

(2) Where a deputy governor falls under any subparagraph of paragraph(1), the Financial Services Commission shall dismiss him/her on the recom- mendation of the Governor.

(3) Where an assistant governor falls under any subparagraph of para- graph(1), the Governor shall dismiss him/her.

[This Article Wholly Amended by Act No. 8863, Feb. 29, 2008] Article 33 (Appointment and Dismissal of Staff)

The Governor shall appoint and dismiss staff.

Article 34 (Restriction on Concurrent Office)

The Governor, deputy governors, assistant governors, auditor and staff shall not be engaged in any profit-making business other than their duties, and shall not hold office concurrently without the approval of the person who has appointive power concerned. Article 35 (Duties of Probity and Confidentiality) (1) The Governor, deputy governors, assistant governors, auditor, and staff shall neither compel any loan nor receive any money and other val- uables, and other benefits from the financial institutions or the executives and staff of such financial institutions subject to the inspection and super- vision under the provisions of this Act.

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 14

(2) The Governor, deputy governors, assistant governors, auditor and staff, or persons who have held those offices shall neither disclose the information obtained on their duties to other person nor use it for purposes other than the duties.

Article 36 (Appointment of Attorney)

(1) The Governor may appoint an attorney among the deputy governors, the assistant governors, or staff, who is empowered to exercise all judicial or non-judicial functions with respect to the affairs of the Financial Supervisory Service.

(2) Limits on the staff who may be appointed as attorney in judical actions under the provisions of paragraph (1) shall be prescribed by Presidential Decree.

SECTION 3 Affairs

Article 37 (Affairs)

The Financial Supervisory Service shall perform the affairs of the following subparagraphs under the provisions of this Act and other Acts and sub- ordinate statutes:

1. Inspection of the affairs and the financial status of the institutions referred to in each subparagraph of Article 38;

2. Sanctions under this Act and other Acts and subordinate statutes accord- ing to the results of inspection under subparagraph 1;

3. Business support to the Financial Services Commission and the in- stitutions under its jurisdiction; and

4. Other affairs which shall be performed by the Financial Supervisory Service under this Act and other Acts and subordinate statutes. Article 38 (Institutions subject to Inspection)

The institutions subject to the inspection of the Financial Supervisory Service shall be as provided for under each of the following subparagraphs:

1. Financial institutions established with authorization under the Banking Act or the Long-Term Credit Bank Act;

2. Securities companies, securities finance companies, institutions per- forming affairs of transfer agency under the Securities and Exchange Act;

3. Asset management companies and investment advisory companies under ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 15

the Indirect Investment Asset Management Business Act;

4. Insurers under the Insurance Business Act;

5. Merchant banks under the Merchant Banks Act;

6. Mutual savings banks and their National Federation under the Mutual Savings Banks Act;

7. Credit unions and their National Federation under the Credit Unions Act;

8. Trust companies under the Trust Business Act;

9. Specialized credit financial companies and dealers engaged concur- rently in credit business under the Specialized Credit Financial Business Act;

10. Futures dealers under the Futures Trading Act;

11. The credit business sector of the National Agricultural Cooperative Federation under the Agricultural Cooperatives Act;

12. The credit business sector of the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act;

13. Deleted;

14. Institutions subject to inspection of the Financial Supervisory Service as prescribed by other Acts and subordinate statutes; and

15. Other dealers engaged in financial business and finance related business prescribed by Presidential Decree.

Article 39 (Establishment of Rules)

(1) The Governor may establish Rules, where necessary, in connection with the performance of the affairs of the Financial Supervisory Service. (2) The Financial Supervisory Service shall immediately report to the Financial Services Commission in cases where it has established or amended the Rules referred to in paragraph (1). (3) The Financial Services Commission may order to take corrective action in cases where the Rules under paragraphs (1) and (2) are unlawful or unreasonable. Article 40 (Demand for Submission of Materials, etc.) (1) When deemed necessary for the performance of affairs, the Governor may demand the reports concerning the business affairs and financial status, the presentation of the materials, and the attendance and statement of the persons concerned of the institutions referred to in each subparagraph of Article 38 and the institutions whose inspections are entrusted to the Financial Supervisory Service under the provisions of other Acts and sub- ordinate statutes.

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 16

(2) A person who conducts an inspection under subparagraph 1 of Article 37 shall produce a certificate indicating his/her authority to persons concerned.

Article 41 (Correction Order and Demand for Disciplinary Punishment) (1) Where any executive or staff of an institution referred to in any subpara- graph of Article 38 falls under any of the following subparagraphs, the Governor may order the head of the institution concerned to take corrective action or demand the disciplinary punishment on the staff concerned:

1. Where he/she has violated this Act, or the provisions, orders, or direc- tions thereunder;

2. Where he/she has falsely prepared reports or materials required by the Governor under this Act, or has submitted them neglectfully;

3. Where he/she has refused, hindered, or evaded the supervision and inspection of the Financial Supervisory Service under this Act; and

4. Where he/she has neglectfully implemented the correction order or the demand for disciplinary punishment by the Governor. (2) The disciplinary punishment referred to in paragraph (1) shall be classi- fied as dismissal, suspension of office, reduction of salary, reprimand, and warning.

Article 42 (Recommendation for Dismissal of Executives, etc.) When an executive of an institution falling under any subparagraph of Article 38 intentionally violates this Act or the provisions, orders, or direc- tions thereunder, the Governor may recommend the person who has appoin- tive power to dismiss the executive concerned, or propose that the Financial Services Commission issue orders to suspend the performance of duties of the executive concerned. Article 43 (Suspension of Business, etc.)

When an institution falling under any subparagraph of Article 38 conducts its business in an unlawful or unsound manner in violation of this Act or the provisions, orders, or directions thereunder continuously, the Governor may propose that the Financial Services Commission issue orders of any of the following subparagraphs:

1. Suspension of the unlawful conduct or misdeed of the institution con- cerned; and

2. Suspension of all or part of the business withing the scope of six months. SECTION 4 Accounting

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Article 44 (Accounting)

The fiscal year of the Financial Supervisory Service shall follow that of the Government.

Article 45 (Budget and Final Accounts)

(1) The budget of the Financial Supervisory Service shall be approved by the Financial Services Commission. (2) The Financial Supervisory Service shall submit the budget to the Financial Services Commission by not later than 60 days prior to the com- mencement of the fiscal year. (3) The Governor shall submit the balance sheet of the settlement of accounts for the fiscal year concerned to the Financial Services Commission within two months after the close of the fiscal year.

Article 46 (Revenue Sources)

The Financial Supervisory Service shall appropriate its expenses from the revenue sources under the following subparagraphs:

1. Contributions from the Government;

2. Contributions from the Bank of Korea;

3. Contributions from the institutions falling under each subparagraph of Article 38;

4. Share of the expenses pursuant to Article 47; and

5. Other revenues prescribed by other Acts and subordinate statutes or by the articles of incorporation.

Article 47 (Share of Expenses)

(1) The institutions falling under each subparagraph of Article 38, which are subject to inspection by the Financial Supervisory Service, shall pay their share of expenses to the Financial Supervisory Service. (2) The ratio, ceiling and other necessary matters concerning the payment of the share of expenses pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree.

Article 48 (Borrowing)

The Financial Supervisory Service may, when necessary, borrow funds from financial institutions with the approval of the Financial Services Commission. Article 49 (Free Loan, etc. of State-owned Property.) The Government may loan the state-owned property to the Financial Super- visory Service or allow it to make use of that property free of charge. Article 50 (Disposal of Surplus)

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 18

The Financial Supervisory Service may carry over its surplus from the final accounts to the following fiscal year with the approval of the Financial Services Commission. SECTION 5 Mediation of Financial Disputes

Article 51 (Financial Disputes Mediation Organization) The Financial Disputes Mediation Committee (hereinafter referred to as the "Mediation Committee") shall be established within the Financial Su- pervisory Service to deliberate on and resolve matters concerning the media- tion of the financial related disputes arising between the institutions re- ferred to in each subparagraph of Article 38 and financial consumers, includ- ing depositors, and other interested persons.

Article 52 (Composition of Mediation Committee)

(1) The Mediation Committee shall be comprised of thirty commissioners or less, including the chairperson.

(2) The chairperson of the Mediation Committee shall be nominated by the Governor from among the deputy governors of the Financial Supervisory Service and the persons falling under any of the following subparagraphs shall be commissioners:

1. A person nominated by the Governor from among the assistant governors of the Financial Supervisory Service;

2. A person commissioned by the Governor from among the judges, public prosecutors, or persons who are qualified as attorneys-at-law;

3. A person commissioned by the Governor from among the executives or ex-executives of the Korea Consumer Agency under the Framework Act on Consumers, and of consumer organizations;

4. A person commissioned by the Governor from among the persons who have served in financial institutions, or finance-related institutions or organizations for 15 years or longer;

5. A person commissioned by the Governor from among persons who have knowledge and experience in finance;

6. A person commissioned by the Governor from among doctors qualified as medical specialists; and

7. Other person commissioned by the Governor as he/she is acknowledged necessary for the mediation of disputes.

(3) The term of office of the commissioners referred to in paragraph (2) 2 through 7 shall be two years, and they may be reappointed. ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 19

(4) When the chairperson of the Mediation Committee is unable to perform his/her duties due to unavoidable reasons, a commissioner of the Mediation Committee nominated by the Governor shall perform the duties for the chairperson.

Article 53 (Mediation of Financial Disputes)

(1) The institutions referred to in each subparagraph of Article 38 and the financial consumers including depositors, and other interested persons, may request the Governor to mediate a dispute which arises with respect to finance.

(2) The Governor shall, upon receipt of a request to mediate a dispute pursuant to paragraph (1), notify the details thereof to the parties con- cerned, and may recommend them to reach an agreement: Provided, That the Governor may neither recommend an agreement nor refer a case to the Mediation Committee pursuant to paragraph (3), if the requested case for the mediation falls under any of the following subparagraphs:

1. Cases which have already been brought to the court, or cases where suits are brought to the court after the mediation request has been submitted to the Governor;

2. Cases which are acknowledged unsuitable as an object for financial dispute mediation;

3. Cases where it is not beneficial to take the procedures for agreement recommendation and mediation by the relevant Acts and subordinate statutes or the objective evidence, etc.; and

4. Other cases prescribed by Presidential Decree. (3) The Governor shall, when an agreement pursuant to paragraph (2) is not reached within thirty days from the date of receiving the request to mediate the dispute, refer the case to the Mediation Committee without delay.

(4) The Mediation Committee shall, when a case is referred to in accordance with paragraph (3), deliberate upon the case and devise a mediation plan within 60 days from the date referred.

(5) The Governor may, if the Mediation Committee has devised a mediation plan, present the plan to the person who requested the mediation and to the parties concerned, and recommend them to accept it. Article 54 (Meeting of Mediation Committee)

(1) A meeting of the Mediation Committee shall be comprised of seven to eleven commissioners of the Mediation Committee designated by the ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 20

chairperson at each meeting, including one chairperson, and it shall be called by the chairperson.

(2) A resolution of the Mediation Committee shall require the attendance of a majority of the commissioners referred to in paragraph (1) and the approval of a majority of those present.

(3) The Governor may request the reconsideration of a resolution when the resolution is deemed to be unlawful or seriously unjust to the public interests.

(4) When the Governor requests reconsideration pursuant to paragraph (3), the Mediation Committee shall pass the resolution again with the attend- ance of not less than two-thirds of the commissioners referred to in para- graph (1) and the approval of not less than two-thirds of those present. Article 55 (Effect of Mediation)

When the mediation plan under Article 53 (5) is accepted by the persons concerned, it shall have the same effect as a judicial compromise. Article 56 (Cessation of Mediation Procedure)

The Governor shall cease the mediation procedure and issue notice therof to the parties concerned if any of the parties brings a suit against any of the other parties to the dispute during the mediation procedure of the requested case.

Article 57 (Operation, etc. of Mediation Committee) Necessary matters concerning the operation of the Mediation Committee and dispute mediation procedures, etc. shall be prescribed by Presidential Decree.

CHAPTER SUPPLEMENTARY PROVISIONS

AND PENAL PROVISIONS

Article 58 (Presentation of Materials)

The Governor shall present the materials necessary for financial supervi- sion, etc. as requested by the Financial Services Commission or the Securities and Futures Commission. Article 59 (Reports on Inspection Results and Measures) The Governor shall, when any inspection pursuant to subparagraph 1 of Article 37 has been conducted, report the inspection result to the Financial Services Commission. The same shall also apply to cases where the measures referred to in Articles 41 and 42 have been taken. Feb. 29, 2008>

Article 60 (Report, Inspection, etc.)

The Financial Supervisory Commission may, when recognized as necessary, instruct the Financial Supervisory Service to report on matters concerning the operations, properties and accounting of the Financial Supervisory Service, or it may inspect the operations, financial status, account books, documents, and other materials of the Financial Supervisory Service as prescribed by the Financial Services Commission.

Article 61 (Authority of Financial Services Commission, etc. to Issue Orders, etc.)

(1) The Financial Services Commission or the Securities and Futures Commission may issue orders necessary for guidance and supervision of the operations of the Financial Supervisory Service.

(2) When it is acknowledged that a disposition of the Securities and Futures Commission or the Financial Supervisory Service is unlawful or significantly unjust to the public interests or the protection of financial consumers, such as depositors, the Financial Services Commission may revoke all or part of such disposition or suspend the execution thereof.

(3) When it is acknowledged that a disposition of the Financial Supervisory Service concerning the operations referred to in any subparagraph of Article 19 is unlawful or significantly unjust, the Securities and Futures Commission may revoke all or part of such disposition or suspend the execution thereof.

Article 62 (Request for Inspection and Joint Inspection, etc.) (1) When the Monetary Policy Committee acknowledges it necessary for the conduct of the monetary and credit policy, the Bank of Korea may request the Financial Supervisory Service to inspect the financial in- stitutions under Article 11 of the Bank of Korea Act, or request the Financial Supervisory Service to allow the staff of the Bank of Korea to jointly partic- ipate in the inspection of the financial institutions with the Financial Supervisory Service.

(2) The Bank of Korea may request the Financial Supervisory Service to provide the inspection results under the provisions of paragraph (1) or request the Financial Supervisory Service to take necessary corrective measures on the inspection results.

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 22

(3) The Bank of Korea shall, when it demands an inspection or joint in- spection persuant to paragraph (1), clearly specify the purpose of inspection, the institutions to be inspected and the scope of such inspection, etc. (4) When the Bank of Korea issues a request pursuant to the provisions of paragraphs (1) and (2), the Financial Supervisory Service shall comply with such request.

Article 63 Deleted. Article 64 Deleted. Article 64-2 Deleted. Article 65 (Cooperation in Exchange of Materials) The Minister of Strategy and Finance, the Financial Services Commission, and the Monetary Policy Committee may request any materials from each other when recognized as necessary for the implementation of their policies. In such cases, the requested institutions shall comply with such request as far as there is no particular reason to the contrary. Article 65-2 (Cooperation of Heads of Agencies Concerned, etc.) (1) When recognized as necessary for the execution of this Act, the Financial Services Commission may request necessary inspection or necessary materi- als from the heads of the administrative agencies concerned, or other agen- cies or organizations.

(2) When recognized as necessary to secure the implementation of corrective measures under the provisions of this Act, the Financial Services Commission may request necessary cooperation from the heads of the admin- istrative agencies concerned, or other agencies or organizations. [This Article Newly Inserted by Act No. 8863, Feb. 29, 2008] Article 66 (Request for Inspection of Korea Deposit Insurance Corporation) (1) When recognized as necessary for the performance of affairs, the presi- dent of the Korea Deposit Insurance Corporation may request the Financial Supervisory Service to inspect any insured financial institution under sub- paragraph 1 of Article 2 of the Depositor Protection Act, or request the Financial Supervisory Service to allow the staff of the Korea Deposit Insurance Corporation to jointly participate in the inspection with the Financial Supervisory Service. (2) When the president of the Korea Deposit Insurance Corporation issues a request for the inspection under paragraph (1), he/she shall clearly specify the purpose of the inspection, the institutions to be inspected, and the scope of the inspection, etc.

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 23

(3) When the president of the Korea Deposit Insurance Corporation issues a request under the provisions of paragraph (1), the Financial Supervisory Service shall comply with such request as far as there is no particular reason to the contrary.

Article 67 (Request for Cooperation of Governor)

When recognized as necessary for the performance of the duties, the Governor may request cooperation from the administrative agencies and other agencies concerned.

Article 68 (Penal Provisions)

(1) Any person who has violated the provisions of Article 35 (2) shall be punished by imprisonment not exceeding three years or by a fine not exceeding twenty million won.

(2) Any person who has violated the provisions of Article 28 shall be punished by imprisonment not exceeding one year or by a fine not exceeding ten million won.

Article 69 (Deemed Public Officials in Application of Penal Provisions) (1) The commissioners of the Financial Services Commission or the commis- sioners of the Securities and Futures Commission who are not public officials, and the executives and staff of the Financial Supervisory Service shall be deemed public officials for the purposes of applying penal provisions of the Criminal Act or other Acts. (2) The scope of the staff regarded as public officials pursuant to the provi- sions of paragraph (1) shall be prescribed by Presidential Decree. Article 70 (Administrative Trial)

Any person whose rights and interests are infringed by the an unlawful or unreasonable disposition by the Financial Services Commission, the Securities and Futures Commission, or the Financial Supervisory Service may file for an administrative trial with the Prime Minister.

Article 71 (Entrustment of Authority)

The Financial Services Commission and the Securities and Futures Commission may, when necessary, entrust the Governor with a part of their authority pursuant to this Act and other Acts and subordinate statutes in order to enhance the efficiency of financial supervision. [This Article Newly Inserted by Act No. 8863, Feb. 29, 2008] ADDENDA

Article 1 (Enforcement Date)

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 24

This Act shall enter into force on April 1, 1998: Provided, That Article 3 (4) through (9) of the Addenda shall be effective on the date of the promulgation of this Act; and the provisions of Sections 1, 2, 4 and 5 of Chapter shall, unless there is any provisions of this Act to the con- trary, enter into force on the date in 1999 to be determined by Presidential Decree.

Article 2 (Transitional Measures on Authority and Duties of Financial Supervisory Service)

(1) The Office of Banking Supervision established under Article 3 of the Addenda, the Securities Supervisory Board under the previous Securities and Exchange Act, the Insurance Supervisory Board under the previous Insurance Business Act, and the Credit Management Fund under the pre- vious Credit Management Fund Act (hereinafter referred to as the "Office of Banking Supervision, etc.") at the time when this Act enters into force shall perform the duties of the Financial Supervisory Service under Article 37, respectively, until a Financial Supervisory Service is established. In this case, the Financial Supervisory Service and the Governor of the Financial Supervisory Service under this Act or other Acts and subordinate statutes shall, until a Financial Supervisory Service is established, be regarded as the Office of Banking Supervision, etc. and the Director of the Office of Banking Supervision, the Director of Securities Supervisory Board, the Director of the Insurance Supervisory Board, or the Chairman of the Credit Management Fund (hereinafter referred to as the "Director of the Office of Banking Supervision, etc.") under the previous Acts, respectively.

(2) The institutions which are subject to examination of the Office of Banking Supervision, etc. under paragraph (1) shall be as follows:

1. In the case of the Office of Banking Supervision, institutions pro- vided in subparagraphs 1, 8, and 11 through 13 of Article 38;

2. In the case of the Securities Supervisory Board, institutions provided in subparagraphs 2, 3, and 10 of Article 38;

3. In the case of the Insurance Supervisory Board, institutions provided in subparagraph 4 of Article 38; and

4. In the case of the Credit Management Fund, institutions provided in subparagraphs 5 through 7 and 9 of Article 38.

(3) The Office of Banking Supervision, etc. shall perform the duties to examine institutions provided in subparagraphs 14 and 15 of Article 38, in such manner as prescribed by the Financial Supervisory Commission. ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 25

(4) The Financial Supervisory Commission may, when it deems necessary, adjust the scope of institutions which are subject to the examination of the Office of Banking Supervision, etc. notwithstanding paragraphs (2) and (3).

(5) Articles 28 and 68 (2) shall, until a Financial Supervisory Service is established, apply mutatis mutandis to the prohibition of use of denomi- nation similar to the "Office of Banking Supervision", etc. and the punish- ment against the violation thereof.

Article 3 (Establishment of Office of Banking Supervision) (1) An Office of Banking Supervision shall, until a Financial Supervisory Service is established, be established to conduct the examination and super- vision of institutions provided in Article 2 (2) 1 of the Addenda. (2) The Office of Banking Supervision shall be a special corporation having no capital.

(3) The Office of Banking Supervision shall succeed by a universal title to all rights and duties concerning employment relationships, etc. of the Director and Deputy Director, Assistant Directors and employees of the Office of Banking Supervision at the Bank of Korea under the previous Bank of Korea Act.

(4) The Minister of Finance and Economy shall have the Director of the Office of Banking Supervision at the Bank of Korea compose a Commit- tee of Establishment by commissioning ten commissioners within thirty days from the date of the promulgation of this Act to conduct the affairs of establishment of the Office of Banking Supervision. (5) The Committee of Establishment shall prepare the articles of incorpo- ration of the Office of Banking Supervision and obtain authorization from the Minister of Finance and Economy.

(6) The Committee of Establishment shall, when it has obtained the author- ization under paragraph (5), make a registration of establishment under the joint signatures of the establishment commissioners without delay. (7) The Committee of Establishment shall, when it has completed the registration of establishment under paragraph (6), transfer the affairs and assets to the Director of the Office of Banking Supervision. (8) The establishment commissioners shall, when the transfer of affairs and assets under paragraph (7) has been completed, be deemed to have been decommissioned.

(9) The expenses involved in the establishment of the Office of Banking Supervision shall be borne by the Bank of Korea.

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 26

(10) Articles 25 though 27 shall apply mutatis mutandis to the articles of incorporation and registration of the Office of Banking Supervision. Article 4 (Budget of Office of Banking Supervision, etc.) (1) The Office of Banking Supervision shall appropriate its budgets from the following sources of revenue:

1. Contributions from the Bank of Korea; and

2. Contributions and shares from the institutions falling under Article 2 (2) 1 of the Addenda.

(2) The Credit Management Fund shall appropriate its budgets from the following sources of revenue:

1. Contributions from the Korea Deposit Insurance Corporation under the Depositor Protection Act; and

2. Contributions and shares from the institutions falling under Article 2 (2) 4 of the Addenda.

(3) The Securities Supervision Board and the Insurance Supervision Board shall appropriate their budgets in such manner as determined in the pre- vious provisions of the Securities and Exchange Act and the Insurance Business Act.

(4) The Bank of Korea, the Korea Deposit Insurance Corporation, insti- tutions falling under Article 2 (2) 1 and 4 of the Addenda shall give fixed contributions pursuant to Article 45 (1) to the Office of Banking Su- pervision and the Credit Management Fund by the beginning date of the fiscal year.

(5) The Financial Supervisory Commission shall decide upon the ratio and limit of contributions provided in paragraphs (1) through (3) and other necessary matters on the payment of contributions until a Financial Supervisory Service is established.

Article 5 (Transitional Measures on Mediation of Financial Disputes) (1) In the case there is a request for mediation of financial disputes to the Office of Banking Supervision, etc., it shall follow the procedures for mediation of financial disputes under the previous Banking Act, Secu- rities and Exchange Act, and Insurance Business Act, until a Financial Supervisory Service is established.

(2) Requests for mediation of financial disputes to the Office of Banking Supervision, etc. under the previous Banking Act, Securities and Ex- change Act, and Insurance Business Act, at the time when a Financial Supervisory Service is established, shall be deemed requests for medi- ation of financial disputes to the Mediation Committee under this Act. ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 27

Article 6 (Succession of Employment Relationships) (1) The Financial Supervisory Service shall succeed by a universal title to all rights and duties concerning employment relationships, etc. and assets of the Office of Banking Supervision, etc., at the time of its es- tablishment.

(2) In the case of decision on treatment of employees and other matters related to service in office, the balance shall be kept in consideration of each employee's career, ability, and the length of service. Article 7 (Establishment of Financial Supervisory Service) (1) The Financial Supervisory Commission shall compose a Committee of Establishment by commissioning ten or less establishment commis- sioners at the time as prescribed by the President Decree to conduct af- fairs of establishment of the Financial Supervisory Service. (2) The Committee of Establishment shall prepare the articles of incorpora- tion of the Financial Supervisory Commission and obtain authorization from the Financial Supervisory Commission.

(3) The Committee of Establishment shall, when it has obtained the author- ization under paragraph (2), make a registration of establishment under the joint signatures of commissioners without delay. (4) The Committee of Establishment shall, when it has completed the registration of establishment under paragraph (3), transfer its business affairs and assets to the Governor of the Financial Supervisory Service appointed under this Act.

(5) The establish commissioners shall, when the transfer of its business affairs and assets pursuant to paragraph (4) has been completed, be deemed to have been decommissioned.

(6) The expenses involved in the establishment shall be borne jointly by the Office of Banking Supervision, etc.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 6 Omitted.

ADDENDA

Article 1 (Enforcement Date)

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 28

This Act shall enter into force on July 1, 2000. (Proviso Omitted.) Articles 2 through 21 Omitted.

ADDENDA

Article 1 (Enforcement Date)

(1) This Act shall enter into force on July 1, 2000. (Proviso Omitted.) (2) Omitted.

Articles 2 through 14 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date as prescribed by Presidential Decree within the limit not exceeding two years from the promulgation date of this Act. (Proviso Omitted.) Enforcement date of this Act shall be Mar. 1, 2002 pursuant to the Presidential Decree No. 17519, Feb. 25, 2002 Articles 2 through 11 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its prom- ulgation. (Proviso Omitted.)

Articles 2 through 20 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force one year after the date of its promulgation. Articles 2 through 6 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2006.

Articles 2 through 6 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 29

Articles 2 through 13 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. Article 2 (Transitional Measures for Affairs, etc. Pursuant to Abolition and New Establishment of Organization)

(1) The Financial Services Commission shall succeed to the affairs falling under the supervision of soundness of the finance and foreign exchange business management institutions among the affairs belonging to the Minister of Finance and Economy under Article 27 of the former Government Organization Act and the affairs of the Financial Supervisory Commission under Article 3 of the Act on the Establishment, etc. of Financial Supervisory Organizations (hereafter referred to as "affairs to which the Financial Services Commission succeeds" in this Article) at the time this Act enters into force.

(2) Authorization and other conduct performed by the Minister of Finance and Economy or the Financial Supervisory Commission, and various report- ing and other conduct performed to the Minister of Finance and Economy or the Financial Supervisory Commission in connection with affairs to which the Financial Services Commission succeeds under the former provisions at the time this Act enters into force shall be regarded as conduct by the Financial Services Commission or to the Financial Services Commission under this Act.

Article 3 (Transitional Measures for Public Officials) The public officials under the Ministry of Finance and Economy who perform the affairs falling under the supervision of soundness of the finance and foreign exchange business management institutions (including the public officials of the secretariat to the Public Fund Oversight Committee and of the Financial Intelligence Unit) and the public officials of the Financial Supervisory Commission shall be regarded as those belonging to the Financial Services Commission.

Article 4 (Transitional Measures for Composition, etc. of Financial Services Commission)

(1) The Chairperson, vice chairperson and commissioners of the Financial Services Commission first appointed under the amended provisions of Article 4 (2) and (3) of this Act shall be appointed within one month after this Act enters into force.

(2) The commissioners of the Financial Supervisory Commission appointed ACT ON THE ESTABLISHMENT, ETC. OF FINANCIAL SERVICES COMMISSION 30

under the former provisions at the time this Act enters into force shall be regarded as commissioners of the Financial Services Commission ap- pointed under the provisions of Article 4 (2) and (3) of this Act until the commissioners of the Financial Services Commission are newly ap- pointed under this Act.

(3) The deputy governors, assistant governors and auditor of the Financial Supervisory Service appointed under the former provisions at the time this Act enters into force shall be regarded as appointed under this Act until their term of office expires.

(4) The commissioners of the Deposit Insurance Committee and the commis- sioners of the Business Administration Control Committee commissioned and appointed under Article 9 of the former Depositor Protection Act and Article 15 of the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation at the time this Act enters into force shall be regarded as commissioners commissioned and appointed under the amended provisions of the same Articles of the same Acts until their term of office expires.

Article 5 Omitted.