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Laws of the Republic of Korea |
1
CREDIT UNIONS ACT
Wholly Amended by Act No. 5506, Jan. 13, 1998
Amended by Act No. 5739, Feb. 1, 1999
Act No. 5982, May 24, 1999
Act No. 6018, Sep. 7, 1999
Act No. 6187, Jan. 21, 2000
Act No. 6204, Jan. 28, 2000
Act No. 6256, Jan. 28, 2000
Act No. 6957, Jul. 30, 2003
Act No. 7428, Mar. 31, 2005
Act No. 8145, Dec. 30, 2006
Act No. 8635, Aug. 3, 2007
Act No. 8840, Jan. 17, 2008
Act No. 8852, Feb. 29, 2008
Act No. 8863, Feb. 29, 2008
CHAPTER I GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to contribute to the economic development of local communities by enhancing the economic and social status of the members of credit unions through healthy growth of credit unions based on common bond, and also providing the residents of local communities with convenience in banking transactions.
Article 2 (Definitions)
The terms used in this Act are defined as follows: 1. The term "credit union (hereinafter referred to as "union")" refers to
a non-profit legal entity established under this Act in
order to achieve
the purpose articulated in Article 1;
2. The term "National Credit Union Federation of Korea (hereinafter
referred to as the "National Federation")" refers to a non-profit
legal
CREDIT UNIONS ACT
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entity established under this Act with an objective of pursuing the
common interest of unions;
3. The term "common bond" means a unit that determines the qualification
for the establishment of a union and the membership thereof;
4. The term "union member" meas a person who is qualified for the
membership as provided for in Article 11 (1) and thus admitted
to
a union as provided for in the articles of association of the union;
5. The term "illegal or non-performing loan" means the money disbursed
by a union as a loan or discount of notes (hereinafter referred
to as
"loan, etc."), or as provisional payment (hereinafter referred to as
"provisional payment"), falling under either of the
following items:
(a) A loan granted in violation of the provisions of Article 42; or
(b) A loan or a provisional payment considered
difficult or impossible
to collect and falling under the criteria prescribed by the Financial
Services Commission (hereinafter
referred to as "non-performing
loan");
6. The term "standard articles of association" refers to the articles of
association established by the National Federation to provide
for the
matters necessary for the establishment and management of unions
in details and apply them to all unions uniformly;
7. The term "standard regulations" means the regulations established by
the National Federation to provide for the matters necessary
for the
management of unions in details and apply them to all unions uniformly;
8. The term "local union" means a union established on the basis of a
common bond of one and the same administrative district, economic
zone, or life boundary; and
9. The term "equity capital" means the aggregate of the capital, reserves,
other retained earnings, etc. in the amount as specified
by the
Presidential Decree.
Article 3 (Name)
(1) Every union shall include the words "credit union" or "sin-hyeob" in
its name.
Article 4 (Registration)
CREDIT UNIONS ACT
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(1) Unions and the National Federation are duly formed only upon the
completion of the registration of their establishment with
the competent
authority having jurisdiction over their principal place of business.
(2) The register office shall keep the "credit
union register" separately.
(3) Necessary matters concerning the registration of unions and the National
Federation shall be prescribed
by the Presidential Decree, in addition to
the provisions of this Act.
Article 5 (Cooperation with Other Unions and Cooperatives)
(1) The National Federation shall strive to promote reciprocal cooperations,
enhance mutual interests, and develop joint projects, together with
cooperatives and unions under other Acts.
(2) The National Federation may organize and run a council jointly with
cooperatives and unions under any other Act, if necessary
for accomplishing
the purpose articulated in paragraph (1).
Article 6 (Relations to Other Acts)
(1) The provisions of the Insurance Business Act shall not apply to the
mutual aid service of unions and the National Federation.
(2) With respect to a merger between unions, the provision of Article 5
(9) of the Act on the Structural Improvement of the Financial
Industry
shall apply.
CHAPTER II UNION
SECTION 1 ESTABLISHMENT
CREDIT UNIONS ACT
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Article 7 (Establishment)
(1) In order to establish a union, 30 or more promoters who belong to
the common bond of the union shall prepare the articles of
association
with a resolution of its organizational general meeting, and shall obtain
an authorization of the Financial Services
Commission through the
Chairperson of the National Federation (hereinafter referred to as "the
National Federation Chairperson"),
as prescribed by the Presidential
Decree.
(2) The resolution of the organizational general meeting require the presence
of a majority of the persons who have submitted to
the representative of
the promoters their written consent to the establishment of the union no
later than the day before the opening
day of the meeting and the affirmative
vote of at least two-thirds of those present at the meeting.
(3) A person who desires to
obtain the authorization under the provision
of paragraph (1) shall submit an application to the Financial Services
Commission
as prescribed by the Presidential Decree.
(1) A person who desires to obtain an authorization for establishment of
a union under the provision of Article 7 (1) shall meet
the following
requirements: 1. He/she shall meet the requirements set forth in the provision of each
subparagraph of Article 14 (4);
2. He/she shall have professional human resources and physical facilities
including an electronic computer system enough to protect
the union
members and carry out the union's business;
3. The business plan shall be feasible and sound; and
4. The promoters shall have sufficient ability to invest, sound financial
standing and good social credibility.
(2) The Financial Services Commission shall, upon receiving an application
for establishment of a union, shall notify the applicant
of whether to
authorize it within a period of time as prescribed by the Presidential Decree.
CREDIT UNIONS ACT
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In this case, the ground for rejection shall be clearly stated, if the application
for authorization is rejected.
(3) Necessary matters concerning the detailed requirements for the
authorization under the provision of paragraph (1) shall be prescribed
by
the Presidential Decree.
(1) The common bond of a union shall be prescribed by the articles of
association mainly based on its administrative district, economic
zone,
life boundary, workplace, organization, and so forth. In this case, the matters
concerning the scope, type, and change of
common bond shall be prescribed
by the Presidential Decree.
(2) A union's principal place of business shall be prescribed by its articles
of association.
(3) A union may have branch offices with an approval of the National
Federation Chairperson.
Article 10 (Mandatory Descriptions of the Articles of Association)
The articles of association of each union shall contain the following
descriptions: 1. Purpose;
2. Name;
3. Address of the principal place of business;
4. Matters concerning common bond;
5. Matters concerning qualification, admission, withdrawal, expulsion of
members;
6. Value per invested share, and the method and term for the payment
for shares;
7. Matters concerning the rights and duties of union members;
CREDIT UNIONS ACT
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8. Matters concerning the scope of business and accounting;
9. Matters concerning executives and organs;
10. Matters concerning dissolution;
11. Method of public notice;
12. Matters concerning transfer of shares; and
13. Other matters necessary for management of the general meeting and
so forth.
SECTION 2 UNION MEMBER AND INVESTMENT
Article 11 (Qualification for Membership)
(1) A person shall be qualified for membership of a union, only if he/she
belongs to the union's common bond and completes the payment
for the
first installment of his/her investment.
(2) Notwithstanding the provision of paragraph (1), a union may admit
persons who do not belong to its common bond as its members,
as specified
by the Presidential Decree, within the extent not deviating from its purpose
of establishment or hindering its efficient
management.
(3) The number of union members of a union shall be not less than 100
persons.
Article 12 Deleted
The capital of a union shall be the aggregate amount of the investments
paid by its members.
Article 14 (Share in Invested Capital, etc.)
(1) Every member of a union shall own at least one share of the invested
capital.
(2) The value per share shall be prescribed by the articles of association.
(3) The maximum number of shares held by a union member
may not exceed
10 percent of total number of outstanding shares.
(4) The minimum limit of the aggregate amount of the invested
capital
shall be as follows: 1. In case of a local union, the amount set forth in one of the following
items, depending upon the location of its principal place
of business:
(a) The Special Metropolitan City or a Metropolitan City: Three hundred
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million Won;
(b) Si: Two hundred million Won; or
(c) Gun (including Eub and Myeon within a Metropolitan City or Si;
the same shall apply hereinafter): Fifty million Won;
2. In case of a workplace union: Forty million Won; or
3. In case of an organization union, the amount set forth in one of the
following items depending upon the location of its principal
place of
business:
(a) The Special Metropolitan City or a Metropolitan City: One hundred
million Won;
(b) Si: Eighty million Won; or
(c) Gun: Fifty million Won.
(5) The investment in a union shall be paid in cash, and shall not be set
off against a claim receivable from the union.
(6) The shares in invested capital paid by a member of a union may not
be subject to a pledge right.
(1) A member of a union may transfer his/her share to another member
in accordance with the provisions of the articles of association.
(2) A transferee of shares shall succeed to the rights and duties of the
transferor.
(3) No union member may own a share jointly or in common with another
member.
Article 16 (Withdrawal)
(1) A union member may notify the union of his/her intention to withdrawal
in advance to withdraw from the union in accordance with
the provisions
of the articles of association.
(2) A member shall be deemed to be withdrawn from a union, if and when
one of the following events or causes occurs:
1. Forfeiture of qualification for membership;
2. Death;
3. Bankruptcy;
4. The incompetent; or
5. Dissolution of the legal entity, if the union member is a legal entity.
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(3) The matters concerning the forfeiture of qualification for membership
under paragraph (2) 1 shall be provided for by the articles
of association.
Article 17 (Refund of the Investment to the Withdrawing Member)
A union shall refund the invested money, deposits, and installment
savings
to its member immediately when the member withdraws from the union.
In this case, the dividend for the investment may be
paid at the time when
dividends are distributed to other members.
Article 18 (Expulsion)
(1) A union may expel a union member by a resolution of the general meeting,
if the member falls under any of the following subparagraphs:
1. If the union member fails to pay his/her investment or perform his/her
obligation to the union;
2. If the union member violates any provision of this Act or an order issued
under this Act, or breaches any provision of the articles
of association;
3. If the union member does not use the service set forth in item (a),
(b), or (f) of Article 39 (1) 1 for two years or longer; or
4. If the value of the share held by the union member has been less than
one share for six months or longer.
(2) A union shall, if it considers to expel a member in accordance with
the provision of paragraph (1), notify the member of the
ground for expulsion
at least ten days earlier than the opening date of the general meeting,
and shall give him/her an opportunity
to make a statement at the general
meeting.
(3) A resolution adopted by the general meeting to expel a union member
without giving the member an opportunity to make a statement
under
the provision of paragraph (2) shall not be valid or effective against the
member.
Article 19 (Voting Right, Elective Right, etc.)
(1) Every member of a union shall have an equal right to vote and elect,
regardless of the number of shares held by him/her: Provided,
That a
member's rights to vote and elect may be limited, if the member is a minor
or has not maintained his/her membership of the
union properly for at
least three months.
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and elect by proxy: Provided, That the members of a union established
on the basis of a common bond of locality or an organization
may not allow
its members to exercise their right to vote or elect by proxy.
(3) The number of union members whom one proxy is
allowed to represent
under the provision of paragraph (2) shall be provided for by the articles
of association.
(4) The proxy under the provision of paragraph (2) shall submit to the
union a document certifying his/her proxy.
Article 20 (Union Member's Liability)
Each union member's liability shall be limited to the amount invested by
the member.
Article 21 Deleted
SECTION 3 ORGANS
Article 23 (General Meeting)
(1) A union shall have the general meeting.
(2) The general meeting shall be composed of the union members, and
the annual general meeting shall be called by the president
of the union
(hereinafter referred to as the "union president") once a fiscal year, while
an extraordinary general meeting may
be called if the union president
considers it necessary or upon a request of the union members or the auditor
under the provision
of Article 26.
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1. Amendment of the articles of association;
2. Final decision on business plan and budget;
3. Election and removal of executives;
4. Approval of the report on the settlement of accounts (including the
business report, the balance sheet, the income statement,
and the
retained earnings appropriation plan or the deficit disposition plan;
the same shall apply hereinafter);
5. Approval of the auditor's report;
6. Dissolution, merger, split-off, or suspension of operations of the union;
7. Expulsion of a union member;
8. Establishment, amendment, or repeal of bylaws; and
9. Other necessary matters as specified by the articles of association.
(2) An amendment of the articles of association under the
provision of
paragraph (1) 1 shall be registered with an approval of the National
Federation Chairperson: Provided, That an amendment
made in accordance
with the standard articles of association under the provision of Article
75 (1) 1 does not require an approval
of the National Federation Chairperson.
Article 25 (Opening and Resolution of the General Meeting)
(1) The general meeting shall
be duly formed to open with the presence
of a majority of the registered union members, and shall adopt a resolution
with the affirmative
vote of a majority of the union members present at
the meeting, unless there is any provision otherwise in this Act: Provided,
That the due formation of the general meeting of a union that has more
than five hundred registered members requires the presence
of at least
251 members, and a resolution thereof requires the affirmative vote of
a majority of the members present at the meeting.
(2) A resolution concerning any matter specified in subparagraph 1 through
6 of Article 24 (1) shall be adopted with the affirmative
vote of at least
two-thirds of the members present at the meeting.
(3) With respect to an issue on which there are conflicting
interests between
the union and one of its members, the interested member may not participate
in the proceedings for the resolution
of the issue.
Article 26 (Request for Calling the General Meeting)
CREDIT UNIONS ACT
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(1) A union member may request the union president to call the general
meeting by submitting a written request stating the purpose
of the meeting
and the reason for calling the meeting with the consent from at least one-fifths
of the members.
(2) The auditor may request the union president to call the general meeting
by submitting a written request stating the purpose
of the meeting and
the reason for calling the meeting, if a wrong or fraud is discovered as
a result of his/her audit under the
provisions of Article 37 and it is necessary
to report his/her discovery in detail to the general meeting promptly.
(3) The union president shall, upon receiving the request under paragraph
(1) or (2), hold the general meeting within fifteen days.
(4) If there is no person who has an authority to call the general meeting,
or the union president omits to hold the general meeting
within the period
of time prescribed in paragraph (3) without a justifiable ground, the auditor
shall call the meeting without
delay. In this case, the auditor shall take
the chair of the general meeting on behalf of the union president.
(5) If the auditor does not call the general meeting in accordance with
the provision of paragraph (4) even at the request of members
to call the
meeting under the provision of paragraph (1), the representative of the
members requesting the general meeting under
the provision of paragraph
(1) shall call the meeting. In this case, the representative of the members
shall take the chair of
the general meeting on behalf of the union president.
(6) When the general meeting is called under the provision of paragraph
(4) or (5), it shall be reported to the National Federation
Chairperson
in advance.
(1) A union shall have no less than five, but no more than nine directors
including one president and one vice-president, and two
or three auditors
as its executives.
(2) The executives shall be elected by the general meeting as provided
for by the articles of association (a by-election to fill
a vacancy of an executive
CREDIT UNIONS ACT
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shall be conducted as separately provided for in the articles of association):
Provided, That at least two-thirds of the executives
including the union
president shall be the members of the union.
(3) A candidate who runs for an election for the union president or
vice-president and successfully acquires the greatest number
of votes from
a majority of the electors shall be elected to take the office, while candidates
whoever acquire a greater number
of votes from a majority of the electors
than others, shall be elected to take relevant executive offices except the
union president
and vice-president. In this case, the proviso of Article
25 (1) shall apply mutatis mutandis.
(4) The union president shall have overall control over the business affairs
of the union, and shall represent the union.
(5) If the union president is unable to perform his/her duties because of
an inevitable cause or reason, the vice-president or one
of directors in
the order enumerated in the articles of associations hall act on behalf of
the president.
(6) The offices of executives shall be honorary, but they may be entitled
to the reimbursement for actual expenses as provided for
by the articles
of association: Provided, that the office of union president shall be the
standing position as prescribed by the
Presidential Decree considering the
size of total assets, etc., and his/her remuneration shall be decided by
the general meeting
in accordance with the guidelines established by the
National Federation Chairperson.
1. Offering, expressing intent to offer, or promising to offer, money, goods,
entertainment, any benefit in property, or a job, private
or public, to
an elector;
2. Committing any conduct set forth in subparagraph 1 toward a person
who is willing to come forward as a candidate or has already
come forward
as a candidate with intent to prevent him/her from coming forward
as candidate or pressing him/her to resign from
the candidacy; or
3. Accepting any benefit or job set forth in subparagraph 1 or 2, or accepting
CREDIT UNIONS ACT
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an offer for such benefit or job.
[Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 28 (Restriction on Qualification for Executives, etc.)
(1) A person who falls under any of the following subparagraphs shall
not be qualified for an executive or a promoter of a union: 1. A minor, the incompetent, the quasi-incompetent, or a person declared
bankrupt and not reinstated yet;
2. A person in whose case three years have not passed since his/her
imprisonment without labor or a heavier punishment sentenced
by a
court was completely executed (including a case where it is deemed
that such sentence has been completely executed), or exempted
from
being executed;
3. A person who is under the suspension of the execution of a punishment
already sentenced;
4. A person who is under the suspension of the sentence of imprisonment
without labor or a heavier punishment;
4-2. A person in whose case five years have not passed since a sentence
of a fine or a heavier punishment imposed upon him/her because
of
his/her violation of this Act, or any finance-related statute as prescribed
by the Presidential Decree (hereinafter referred
to as "finance-related
statute" for the purpose of this Act) was completely executed (including
a case where it is deemed that
such sentence has been completely
executed) or was exempted from the execution;
5. A person who forfeits his/her qualification or whose qualification is
suspended by court judgment or operation of any other Act;
6. Deleted; 7. A person who was removed from his office or was subjected to the
disciplinary dismissal by operation of any finance-related statute
(including a case where he/she was subjected to the disposition of
re-election of an executive under the provision of Article 84
(1) 1; the
same shall apply hereinafter) and in whose case five years have not
passed since such disposition or disciplinary dismissal;
7-2. A person who has served as an executive or an employee of a legal
entity or a corporation whose permission, authorization
or registration
for business was revoked under any finance-related statute (applicable
CREDIT UNIONS ACT
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only to a person directly liable or substantially responsible for the
occurrence of the cause or event for the revocation, as prescribed
by
the Presidential Decree) and in whose case five years have not passed
since such revocation for the legal entity or the corporation;
7-3. A person to whom a disciplinary measure of suspension from office,
suspension of performance of service, or any heavier discipline
as
prescribed by the Presidential Decree under this Act or any
finance-related statute and in whose case the period of time prescribed
by the Presidential Decree has not passed yet; or
8. A person who falls under any other ground for restriction on qualification
as provided for by the articles of association.
(2) An executive shall be discharged immediately once a ground or event
set forth in paragraph (1) (excluding subparagraph 7-3)
is discovered or
occurs.
(3) An act of the union in which an executive discharged under the provision
of paragraph (2) was involved shall not become invalid
or ineffective.
Article 29 Deleted
(1) A union may have a general manager or a manager as an executive
officer.
(2) The criteria for unions that may have a general manager or a manager
as an executive officer and the guidelines for the appointment
and dismissal
of such an executive officer shall be prescribed by the National Federation
Chairperson.
(3) A general manager or a manager shall carry out the financial and
accounting affairs of the union, and shall be responsible for
the preservation
of evidencing documents relating to finance and accounting, and the receipts,
disbursements and safekeeping of
cash.
(4) A general manager or a manager shall be appointed and discharged
by the union president subject to resolution of the board of
directors from
among the persons who have qualification acceptable to the National
Federation Chairperson.
(5) The provisions of Article 11 (1) and (3), and Articles 12, 13, and 17
of the Commercial Act and Article 149 and Article 179
through 181 of
the Non-Contentious Case Procedure Act shall apply mutatis mutandis
to the general managers and the managers.
CREDIT UNIONS ACT
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Article 30-2 (Prohibition of Bribery, etc.)
No executive or employee of a union may demand, receive, or promise a
gift or any bribery regardless of whether it is directly or
indirectly related
to his/her job.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 31 (Term of Office, etc.)
(1) Every executive shall have the term of four years, but may be elected
for consecutive terms: Provided, That the unit president
may be re-elected
consecutively only for one more term.
(3) Notwithstanding the provision of paragraph (1), the term of executives
at the time of the establishment shall be prescribed
by the articles of
association within the period of time not exceeding four years.
Article 32 (Sanction against an Executive for Failure in Performance of
Obligations)
The board of directors may suspend an executive from his/her execution
of office, if the executive fails to perform his obligation
to the union within
three months.
Article 33 (Executives' Liability, etc.)
(1) Every executive shall abide by this Act, an order issued under this
Act, the articles of association, the regulations, and the
resolutions of the
general meeting and the board of directors, and shall perform his/her duties
in good faith.
(2) Every executive shall be jointly liable for the damages inflicted upon
the union or a third party by his/her intentional or
grossly negligent act
(an intentional or negligent act in case of a standing executive) in the
course of performing his/her duty.
16
not be applicable to the executives who expressed dissent at the meeting.
(5) The provisions of Article 35 of the Civil Act, Articles
382 (2), 386
(1), and 414 of the Commercial Act shall apply mutatis mutandis to the
executives of the unions.
Article 34 (Board of Directors)
(1) A union shall have the board of directors consisting of directors.
(2) The unit president shall take the chair of the directors'
meeting.
(3) A director may not participate in the proceedings of the directors' meeting
for the issue in which there is a conflict
between the union's interest and
his/her personal interest.
(4) The board of directors shall oversee the business affairs executed by
the unit president and the executive officer in connection
with the matters
resolved under the provision of Article 36 (1), and may demand them to
report necessary matters to the board of
directors.
Article 35 (Call for the Directors' Meeting)
(1) The directors' meeting shall be called by the unit president as prescribed
by the articles of association.
(2) The unit president shall, upon the request by two or more directors
or auditors, call the directors' meeting without delay.
Article 36 (Matters subject to Resolution of the Directors' Meeting)
(1) The following matters shall be subject to resolution of
the directors'
meeting:
1. Establishment, amendment, or repeal of a regulation;
2. Acquisition and disposition of fundamental assets;
3. Decision-making on the basic direction for the execution of business;
4. Borrowing of fund as required (or maximum limit in case of borrowing
a loan from the National Federation);
5. Disposition of reserves;
6. Matters to be brought up before the general meeting; and
7. Important matters not under the control of the general meeting.
(2) The directors' meeting shall be duly formed to open with the
presence
of a majority of directors, and shall adopt a resolution with the affirmative
vote of a majority of the directors present
at the meeting.
(3) The method of management of and call for the directors' meeting, etc.
CREDIT UNIONS ACT
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shall be provided for by the articles of association.
Article 37 (Auditors' Duties)
(1) The auditor shall audit the business, the status of assets, accounting
books and documents of the union at least once every
quarter of a year
after notifying the auditing in advance, and shall submit the auditor's
quarterly report to the board of directors,
and the annual report prepared
by integrating the quarterly reports to the general meeting respectively.
(2) The auditor shall
verify the deposit passbooks and other instruments
of substantial number of members with the accounting books or records
of the
union at least once every quarter of a year without giving an advance
notice.
(3) The notification of the auditing and the submission of the auditor's
report under paragraph (1) shall be done jointly by two
or more auditors:
Provided, That each auditor may submit his/her own opinion if the auditors
differ in opinion.
(4) The provisions of Articles 391-2, 402, 412-2, 413, and 413-2 of the
Commercial Act shall apply mutatis mutandis to the auditors'
duties.
Article 38 (Auditor's Power to Represent)
An auditor shall represent the union in conducting an legal act such as
litigation, contracting, and the like arising in connection
with the unit
president.
SECTION 4 BUSINESS
Article 39 (Types of Business, etc.)
(1) A union shall engage in the following business activities in order to
accomplish its purpose:
1. Credit service:
(a) Receiving and disbursing deposits and installment savings to and
from its members;
(b) Lending loans to its members;
(c) Domestic exchange;
(d) Providing service commissioned by the State, a public organization,
the National Federation or a financial institution;
CREDIT
UNIONS ACT
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(e) Safekeeping securities, precious metals, and valuable goods for its
members;
(f) Discount of notes;
(g) Issuance and management of electronic means for debit payment and
the settlement of such payments as prescribed by the Electronic
Banking
Act (in this case, the foregoing shall apply only to the unions that
jointly engage in the business of the National Federation
under the
provision of Article 78 (1) 5 (g)); and
(h) Issuance, management, and sale of electronic means for advance
payment and the settlement of such payments as prescribed by
the
Electronic Banking Act (in this case, the foregoing shall apply only
to the unions that jointly engage in the business of the
National
Federation under the provision of Article 78 (1) 5 (h));
2. Welfare service;
3. Mutual aid service for its members;
4. Educational activities for enhancing economic and social status of its
members;
5. Business activities commissioned by the National Federation;
6. Business activities commissioned by the State or a public organization,
and business activities prescribed by other statutes as
the business
activities of the union; and
7. Business activities incidental to the business activities set forth in
subparagraph 1 through 6.
(2) Necessary matters concerning the scope of welfare service under
paragraph (1) 2 and the implementation of such service shall
be prescribed
by the Presidential Decree.
(3) The Financial Services Commission may publicly notify the work process
for the deposits, installment savings, or loans in connection
with the credit
service provided by unions under the provision of paragraph (1) 1.
(1) A union may allow non-members to use its services under the provision
of Article 39 (1) within the extent not interfering with
its members' use,
as prescribed by the Presidential Decree. In this case, the term "member"
shall be construed as "non-member."
CREDIT UNIONS ACT
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(2) A person who belongs to one and the same household together with
a union member, another union, or a member of another union
shall be
deemed to be a member of the union, when such a person or another union
uses the service under the provision of paragraph
(1).
Article 41 (Borrowing of Loans)
(1) A union may borrow the fund within the limit of the amount equivalent
to five percent of its total assets or the amount of its
equity capital, whichever
is greater, for executing its business activities under the provisions of Article
39, as prescribed by
the Presidential Decree.
(2) Notwithstanding the provision of paragraph (1), a union may borrow
the fund exceeding the limit of the amount equivalent to
five percent of
its total assets or the amount of its equity capital, whichever is greater,
if it obtains an approval of the National
Federation Chairperson in
accordance with the guidelines prescribed by the Financial Services
Commission.
A union shall not grant one person a loan, etc. exceeding the limit prescribed
by the Presidential Decree within the limit of the
amount equivalent to
twenty percent of its equity capital or one percent of its total assets,
whichever is greater, except as approved
otherwise by the National
Federation Chairperson in accordance with the guidelines prescribed by
the Financial Services Commission.
In this case, all loans, etc. granted
in the name of other person but on a principal's account shall be deemed
to be the loans,
etc. granted to the principal.
(1) A union shall, as the reserve for repayment, keep at least ten percent
of the balance of deposits and installment savings as
of the end of the
preceding month as prescribed by the Presidential Decree, and shall deposit
part of the reserve for repayment
with the National Federation in accordance
with the rate and method prescribed by the Presidential Decree.
20
of paragraph (1) and the disposition of gains from the management thereof
shall be prescribed by the Presidential Decree.
1. Deposit with the National Federation;
2. Deposit with a financial institution specified by the Presidential Decree;
or
3. Purchase of national bonds, public bonds, or securities of the types
and within the limit specified by the Presidential Decree.
Article 45 (Limit to Possession of Real Property)
(1) A union may not own real property, except as necessary for its business
or inevitable for the recovery of its claims.
(2) Deleted.
SECTION 5 ACCOUNTING
Article 46 (Fiscal Year)
The fiscal year of a union shall be prescribed by its Articles of Association.
Article 47 (Accounting and Settlement of Accounts)
(1) The accounts of a union shall be classified into general accounts and
special accounts, and the business divisions by accounts
shall be prescribed
by the articles of association.
(2) Necessary matters concerning the accounting principles and the
settlement of accounts for a union shall be prescribed by the
Financial
Services Commission: Provided, That the detailed matters including the
titles of account and the forms of accounting
books may be prescribed
separately by the National Federation Chairperson.
(4) A union shall submit to the National Federation Chairperson the report
on the settlement of accounts as of the end of each fiscal
year within thirty
days after it obtains an approval of the general meeting.
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21
(5) A union whose total assets as of the end of the preceding year reach
or exceed the reference amount prescribed by the Presidential
Decree shall
undergo the audit every year by an auditor as defined by the provision
of Article 3 of the Act on External Audit of
Stock Companies, if the Financial
Services Commission concludes it necessary to conduct an independent
audit for the protection
of the members of the union and thus request
an independent auditor to conduct such an audit: Provided, That the
foregoing shall
not apply to the union, if it has already undergone the
audit conducted by the Financial Services Commission for the corresponding
year.
(1) A union shall prepare its business plan and budget (including compilation
of a supplementary revised budget) every year in compliance
with the
guidelines for the business plan and budget compilation established by
the National Federation Chairperson, and shall
obtain an approval of the
general meeting: Provided, That the foregoing shall not apply to the revision
of the business plan and
budget due to an inevitable reason or cause such
as an increase in interest expense.
(2) Deleted.
Article 49 (Legal Reserve)
(1) A union shall set aside for legal reserve at least ten percent of its
income every fiscal year until the amount reaches twice
as much as its
total paid capital.
Article 50 (Voluntary Reserve)
A union may set aside a portion of its income for business reserve every
fiscal year.
Article 51 (Special Reserve)
A union may accumulate some amount every fiscal year as a special reserve
CREDIT UNIONS ACT
22
in order to set off its deficit and appropriate it for the loss and damages
sustained due to a theft, robbery, fire, and any other
disaster or accident
beyond its control, as provided for by its articles of association.
Article 52 (Disposition of Loss)
(1) The loss incurred to a union during a fiscal year shall be set off with
the unappropriated retained earnings, special reserve,
and voluntary
reserve in the enumerated order, while the still remaining loss, if any,
shall be carried forward to the following
fiscal year.
(2) If a union ends up with a loss for several years consecutively and there
is no reserve for setting off such losses
with, the union may reduce its
capital with the affirmative vote of at least two-thirds of its members present
at the general meeting
and then with an approval of the National Federation
Chairperson to the effect that the paid capital invested by each member
shall
decrease proportionately.
Article 53 (Disposition of Income)
(1) A union may not dispose of its income unless and until it sets off its
loss completely.
(2) The income left over after setting off with the reserves under the
provisions of Article 49 through 51 shall be distributed
to members in
proportion of the shares in the paid capital held by each member with
a resolution of the general meeting. In this
case, the dividends may be
distributed simultaneously with the dividends proportionate to each
member's performance of use of the
services of the union, as provided for
by the articles of association.
SECTION 6 DISSOLUTION, SPLIT-OFF, AND MERGER
Article 54 (Dissolution)
(1) A union shall be dissolved if any of the following events or causes
occurs:
1. If a cause for dissolution prescribed by the articles of association occurs;
2. If the general meeting resolves to dissolve the union;
3. If it is merged or bankrupt; or
4. If the authorization for its establishment is revoked.
(2) When dissolution is resolved by the general meeting under the provision
of paragraph (1) 2, it shall be reported to the National Federation without
CREDIT UNIONS ACT
23
delay.
(3) A union dissolved under the provision of paragraph (1) shall file for
the registration of dissolution within fourteen days:
Provided, That the
surviving union shall file for the registration of change, in case where a
union is merged into another union.
Article 55 (Merger and Split-Off)
(1) A union may be merged or split off by a resolution of the general meeting.
In this case, the provisions of Article 7 through
10 and the proviso of Article
25 (1) shall apply mutatis mutandis.
(2) The Government or the National Federation may provide a financial
aid, etc. within the limit of its budget, if considered necessary
to promote
a merger of unions.
(3) The surviving union or the newly established union as a consequence
of a merger or split-off shall succeed to the common bond,
rights and
obligations of the union disappearing subsequent to the merger or split-off.
SECTION 7 LIQUIDATION
Article 56 (Supervision over Liquidation Affairs)
The affairs relating to the liquidation of a union shall be supervised by
the
National Federation Chairperson.
Article 57 (Liquidator)
(1) The union president shall become the liquidator in the dissolution of
the union, except for bankruptcy: Provided, That the foregoing
shall not
apply, where the National Federation Chairperson appoints other liquidator
in accordance with the provisions of the Presidential
Decree.
(2) The liquidator shall register the ground for dissolution, the date of
dissolution, the name and address of the liquidator,
and the restrictions
on the liquidators' power to represent, if any, with the competent authorities
having jurisdiction over the
union's principal place of business and its
branch offices respectively. The foregoing shall also apply to a change,
if any, in
the registered records.
Article 58 (Residual Property after Dissolution)
The residual property left over after liquidation, if any, after fully performing
the obligations of the dissolved union shall be
disposed of in accordance
with the provisions of the articles of association.
CREDIT UNIONS ACT
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Article 59 (Liquidator's Duties, etc.)
(1) The liquidator shall inspect the status of the assets owned by the union
immediately upon his/her inauguration, and shall prepare
a list of assets
and the balance sheet for approval of the general meeting. the foregoing
shall apply to the report on the settlement
of accounts required at the
time when the affairs relating to the liquidation are completed.
(2) If the general meeting is not
duly formed for the approval under paragraph
(1) even after calling the general meeting twice or more, the approval
of the National
Federation Chairperson shall be deemed to substitute the
approval of the general meeting.
(3) The liquidator shall not distribute the union's assets unless and until
the union's obligations are fully performed or assets
sufficient for such
performance are duly deposited.
(4) The liquidator shall, upon the closing of the liquidation affairs, register
it with the competent authority having jurisdiction
over the place of business
immediately, and shall report it to the National Federation Chairperson
in detail.
Article 60 (Application Mutatis Mutandis of the Civil Act, etc.)
The provisions of Article 79, 81, 87, 88 (1) and (2), 89 through
92, and
93 (1) and (2) of the Civil Act and the provision of Article 121 of the
Non-Contentious Case Procedure Act shall apply
mutatis mutandis to the
liquidation of a union.
CHAPTER III NATIONAL FEDERATION
SECTION 1 ESTABLISHMENT AND CAPITAL
Article 61 (Establishment)
(1) The National Federation composed of unions shall be established to
guide and oversee the business of the unions and promote
the enhancement
of their common interest and the healthy growth.
(2) The provisions of Articles 7 and 8 shall apply mutatis mutandis to
the National Federation.
Article 62 (Membership)
All unions shall become members of the National Federation.
Article 63 (Capital and Investment)
CREDIT UNIONS ACT
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(1) The National Federation shall be capitalized by the investments paid
by the unions.
(2) Every union shall invest in at least one share of the capital.
(3) The value per share and the guidelines for the payment shall
be prescribed
by the articles of association, and the liability of each union shall be limited
to the amount of the investment
paid by it.
(4) The investment in the National Federation by a union shall be paid
in cash, and shall not set off against any of the union's
claims against
the National Federation.
(5) A union's shares invested in the National Federation may be transferred
to another union with an approval of the National Federation
Chairperson.
In this case, the transferee shall succeed to the rights and obligations
of the transferor.
(6) In case where a union is dissolved, the National Federation Chairperson
shall refund its investment to reduce the capital by
the amount equivalent
to the share invested by the union or may allow the dissolving union to
transfer its share to another union.
Article 64 (Mandatory Descriptions of the Articles of Association)
The articles of association of the National Federation shall
contain the
following descriptions:
1. Purpose;
2. Name;
3. Address of its principal place of business;
4. Matters concerning the details of its business and accounting;
5. Value per share of the capital and the method and time for the payment
for the shares;
6. Matters concerning imposition and collection of membership fee;
7. Matters concerning its organs and executives;
8. Method of public notice; and
9. Other necessary matters.
Article 65 (Business Territory, Offices, etc.)
(1) The National Federation composed of credit unions shall be only one
throughout the country, and it shall cover the whole territory
of the Republic
of Korea as its business territory.
(2) The National Federation shall have its principal office as prescribed
by the articles of association, and may have regional
offices as necessary.
CREDIT UNIONS ACT
26
(3) A regional office under the provision of paragraph (2) may establish
and run a council in order to exchange information for
the development
of the unions and give assistance to the unions for the efficient management
of their business affairs.
(4) The matters concerning the organization and management of the council
under the provision of paragraph (3) and other necessary
matters shall
be provided for by the articles of association.
Article 66 (Membership Fee)
The National Federation may charge and receive membership fee from unions
by a resolution of the general meeting.
Article 67 (Dissolution)
The matters concerning the dissolution of the National Federation shall
be prescribed by an Act.
SECTION 2 ORGANS
Article 68 (General Meeting)
(1) The National Federation shall have the general meeting.
(2) The general meeting shall be composed of the National Federation
Chairperson and the representatives from the unions, and shall be classified
into an annual general meeting and a special general
meeting.
(3) The annual general meeting shall be called by the National Federation
Chairperson once every year, while a special
meeting shall be called when
the National Federation Chairperson considers it necessary or at the request
of the representative
of the unions under the provision of Article 26, which
shall apply mutatis mutandis under paragraph (4), as prescribed by the
articles
of association, and the National Federation Chairperson shall take
the chair of the meeting.
(4) The provisions of the main sentence of Article 19 (1), the main sentence
of Article 25 (1), and Article 26 (1) through (5) shall
apply mutatis mutandis
to the general meeting of the National Federation. In this case, the term
"auditor" in Article 26 shall
be construed as the "representative of the
audit committee under the provision of Article 76 (3)."
Article 69 (Matters subject to Resolution of the General Meeting)
(1) The following matters shall be subject to resolution of the
general
CREDIT UNIONS ACT
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meeting, except as provided for otherwise in this Act:
1. Amendment of the articles of association;
2. Establishment, amendment, and repeal of the bylaws;
3. Method for imposing membership fee and determining the amount;
4. Approval of the business plan, budget, and the report on the settlement
of accounts;
5. Approval of auditor's report;
6. Matters concerning appointment and removal of executives; and
7. Other matters brought up by a resolution of the board of directors
or the consent of at least one-fifths of all unions.
(2) An
amendment to the articles of association under the provision of
paragraph (1) 1 shall be registered immediately after obtaining
an approval
of the Financial Services Commission.
(1) The National Federation shall have the representatives' meeting, which
may substitute the general meeting.
(2) The matters subject to resolution of the general meeting may be resolved
by the representatives' meeting. In this case, such
a resolution shall be
deemed to substitute the resolution of the general meeting.
(3) The representatives meeting shall be composed
of the National
Federation Chairperson and representatives.
(4) The fixed number of the representatives shall be no more than two
hundred persons, and they shall be elected from among the
representatives
from unions as prescribed by the articles of association.
(5) The term of representatives shall be four years,
and the term of a
representative elected by a by-election shall be the remaining term of his/her
predecessor.
(6) The provisions concerning the general meeting shall apply mutatis
mutandis to the representatives' meeting, but the rights to
vote and elect
may not be exercised by proxy.
Article 71 (Fixed Number of Executives)
(1) The National Federation shall have no less than fifteen, but no more
than twenty-five directors as executives including one
Chairperson, one
President for credit and mutual aid services, and Director for inspection
and supervision.
CREDIT UNIONS ACT
28
(2) The Chairperson, the President for credit and mutual aid services,
and the Director for inspection and supervision among directors
shall be
standing executives.
(3) The executives other than the standing executives under the provision
of paragraph (2) shall be non-standing, but may be entitled
to
reimbursement for actual expenses as prescribed by the articles of
association.
[This Article Wholly Amended by Act No. 6957, Jul. 30, 2003]
Article 71-2 (Appointment of Executives and Requirements for
Qualification)
(1) The executives shall be elected at the general meeting as prescribed
by the articles of association, and at least one-thirds
of the executives
including the President for credit and mutual aid services and the Director
for inspection and supervision shall
be elected from among the people who
are not an executive or a senior officer of a union.
(2) The National Federation Chairperson
shall be a member of a union.
(3) The President for credit and mutual aid service, the Director for
inspection and supervision,
and the directors who are not an executive
or a senior officer of a union (hereinafter referred to as "professional
directors")
shall be elected from among the people who have good expertise
and experience in the area of finance and meet the requirements prescribed
by the Presidential Decree.
(4) A union president shall, if elected to the National Federation
Chairperson, shall resign from his/her current office before
inauguration.
(5) The matters concerning the method of election of executives, etc. shall
be prescribed by the articles of association,
if there is no relevant provision
in this Act.
(6) The provision of Article 28 shall apply mutatis mutandis to the executives
of the National Federation.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 72 (Executives' Duties, Terms, etc.)
(1) The National Federation Chairperson shall represent the National
Federation, and shall have overall control over the affairs
of the National
Federation: Provided, That the foregoing shall not apply to the affairs
under the exclusive control of the President
for credit and mutual aid services
under the provision of paragraph (2).
CREDIT UNIONS ACT
29
(2) The President for credit and mutual aid services shall carry out the
following affairs with an exclusive control over them,
and shall represent
the National Federation in carrying out such affairs:
1. The business activities specified in Article 78 (1) 5 and 6 and the
business activities relating to the credit and mutual aid
services and
the business activities incidental to such services among those specified
in subparagraph 7 through 9 of said paragraph;
and
2. The establishment of business goals, the business plan, and the financing
plan for the assigned business affairs under subparagraph
1.
(3) The President for credit and mutual aid services shall perform his/her
duties relating to the business affairs assigned
to him/her earnestly in
good faith as a professional business-person, and shall report to the board
of directors and the general
meeting the results of the evaluation on the
business performance conducted as prescribed by the articles of association.
(4) The
Director for inspection and supervision shall exclusively carry out
the affairs relating to inspection and supervision over the
unions under
the provision of Article 78 (1) 3, while the National Federation Chairperson
shall take appropriate measures such
as delegation of authorities so that
the Director for inspection and supervision can carry out the assigned affairs
independently.
(5) The National Federation Chairperson may demand the general meeting
to remove the President for credit and mutual aid services,
if it is found
that the President for credit and mutual aid services has a difficulty in
performing his/her duties because of the
poor business performance revealed
as a result of the evaluation on the business performance under the provision
of paragraph (3),
or commits an act in violation of this Act, an order issued
under this Act, or any provision of the articles of association or a
regulation.
(6) If the National Federation Chairperson is unable to perform his/her
duty due to an inevitable reason or cause,
one of executives shall act on
his/her behalf according to the order prescribed in the articles of association.
(7) The provisions
of Article 27-2, 31 (1) and (2), and 33 shall apply
mutatis mutandis to the executives of the National Federation. In this
case,
the term "unit president" in Article 31 (1) shall be construed as the
"National Federation Chairperson."
Article 73 (Employees)
(1) Employees shall be appointed and discharged by the National Federation
CREDIT UNIONS ACT
30
Chairperson: Provided, That the employees who engage in the business
affairs assigned to the President of credit and mutual aid
services under
the provision of Article 72 (2) shall be appointed and discharged by the
National Federation Chairperson subject
to consultation with the President
for credit and mutual aid services.
(1) The National Federation shall have the board of directors.
(2) The directors' meeting formed with directors shall be convened
by the
National Federation Chairperson as prescribed by the articles of association,
and the National Federation Chairperson shall
take the chair of the meeting.
(3) The National Federation Chairperson shall, upon the request of five
or more directors, convene
the directors' meeting without delay.
(4) The National Federation may have a committee composed of three or
more directors within the board of directors for deliberation
on a specialized
business such as credit service as prescribed by the articles of association.
Article 75 (Matters subject to Resolution of the Board of Directors)
(1) The following matters shall be subject to resolution of
the board of
directors: 1. Establishment, amendment, and repeal of the standard articles of
association for unions;
2. Establishment, amendment, and repeal of the standard regulations
for unions;
3. Establishment, amendment, and repeal of regulations;
4. Deleted; 5. Acquisition and disposition of fundamental assets;
6. Maximum limit of borrowed loans;
7. Matters delegated by the general meeting and matters to be brought
up before the general meeting;
7-2. Matters considered necessary by the National Federation Chairperson
or at least one-thirds of directors; and
8. Important matters other than those within the authority of the general
meeting under any provision of a statute or the articles
of association.
(2) The Financial Services Commission may demand the board of directors
CREDIT UNIONS ACT
31
to revise the standard articles of association or the standard regulations,
if it finds that any provision of the standard articles
of association or the
standard regulations is unlawful or might hinder the sound management
of unions. In this case, the board
of directors shall respond accordingly
to such a demand.
(4) The board of directors shall supervise the business affairs executed
by the standing executives in connection with the matters
resolved under
the provision of paragraph (1), and may demand them to report necessary
matters to the board of directors.
(1) The National Federation shall establish a committee within the board
of directors for auditing the business performance, accounting,
etc. of the
National Federation (hereinafter referred to as the "audit committee").
(2) The audit committee shall be composed of
three or more directors,
while at least two-thirds of all committee members shall be comprised
of professional directors.
(3) The audit committee shall, by a resolution, select a person who shall
represent the committee.
(4) If the composition of the audit committee fails to conform to the
requirements under the provision of paragraph (2) due to resignation
or
death of a member, or any other reason, the general meeting convened
first after occurrence such an event or cause shall take
a measure to make
the composition of the audit committee to conform to the requirements
under the provision of paragraph (2).
[This Article Wholly Amended by Act No. 6957, Jul. 30, 2003]
Article 76-2 (Audit Committee's Mission, etc.)
(1) The audit committee shall audit the business affairs, the status of
assets, accounting books and documents of the National Federation
at least
once every quarter of a year after giving a notice of the audit, and shall
submit a quarterly audit report to the board
of directors and an annual
audit report, in which the quarterly reports are integrated, to the annual
general meeting or the annual
representatives' meeting.
(2) The provisions of Article 26 (2) through (5) and Article 38 of this
Act and Articles 391-2 (2), 402,
412, 412-2, 413, 413-2, 414, 447-3,
CREDIT UNIONS ACT
32
447-4 and 450 of the Commercial Act shall apply mutatis mutandis to
the audit committee. In this case, the term "auditor" in Article
26 (2)
through (5) shall be construed as the "representative of the audit committee,"
the term "auditor" in Article 413-2, 414,
and 450 of the Commercial Act"
as the "member of the audit committee," and the term "auditor" in other
provisions as the "audit
committee" respectively.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
[The previous Article 76-2 Moved to Article
76-4
(2) The National Federation shall have one compliance officer responsible
for monitoring whether the guidelines for internal control
are complied
with, conducting an investigation of a violation of the guidelines for internal
control, if such a violation occurs,
and then reporting the results of his/her
investigation to the audit committee (hereinafter referred to as the
"compliance officer").
(3) The appointment and discharge of the compliance officer by the National
Federation Chairperson shall be subject to resolution
of the board of
directors.
(4) The compliance officer shall meet the following requirements for
qualification: 1. He/she shall be a person who has any of the following careers:
(a) A person who has a career of at least ten years working for
the
Bank of Korea or an institution subject to the audit under Article
38 of the Act on the Establishment, etc. of Financial Services
Commission (including a foreign financial institution equivalent to
such an institution);
(b) A person who holds a master's degree in finance-related area and
has a career of at least five years as a researcher, full-time
lector
or higher in a research institute, a university, or a college;
(c) A person who holds a license of lawyer or certified public
accountant
and has a career of at least five years engaging in a business relating
to the license; or
CREDIT UNIONS ACT
33
(d) A person who has a career of at least five years working for the
Ministry of Strategy and Finance, the Financial Services
Commission,
or the Financial Supervisory Service and in whose case
five years have passed since his/her retirement or resignation from
the
agency or institution;
2. A person who does not fall under any subparagraph of Article 28 (1);
and
3. There shall be no record that he/she has ever been subject to a measure
corresponding to a demand for caution or warning from
the Financial
Services Commission or the Governor of the Financial Supervisory
Service due to a violation of a finance-related
statute during the latest
five years.
(5) Necessary matters concerning the guidelines for internal control and
the compliance officer shall be prescribed by the Presidential
Decree.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 76-4 (Appointment of Representative)
The National Federation Chairperson and the President for credit and
mutual aid services may appoint a representative who shall
have an
authority to do all acts on behalf of them within or without a trial in connection
with the business affairs of the National
Federation from among the Director
for inspection and supervision or employees, as prescribed by the articles
of association.
(1) The National Federation may have a training center.
(2) Necessary matters concerning the establishment and organization of
the training center shall be prescribed by the articles of association.
SECTION 3 BUSINESS
Article 78 (Types of Business, etc.)
(1) The National Federation shall carry out the following business activities
in order to achieve its purpose of business:
1. Guidance, coordination, survey, research, and public relations relating
to the business of unions;
CREDIT UNIONS ACT
34
2. Educational programs for the union members and the executives and
employees of unions;
3. Inspection and supervision over unions;
4. Supports to the business of unions;
5. Credit service:
(a) Receipt and management of deposits, installment savings, repayment
reserve, etc. from unions;
(b) Lending funds to unions;
(c) Domestic and foreign exchange services for unions and their members;
(d) Vicarious execution of the business of the State, a
public organization
or a financial institution;
(e) Payment guarantee for unions and discount of notes for unions;
(f) Underwriting and sale of securities under the provisions
of Article
2 (1) 1 and (2) of the Securities and Exchange Act;
(g) Issuance and management of electronic means for direct payment
and settlement of such payments under the Electronic Banking Act;
and
(h) Issuance, management, sale of electronic means for advance payment
and settlement of such payments under the Electronic Banking
Act;
6. Mutual aid service for unions and their members;
7. Business commissioned or subsidized by the State or a public
organization;
8. Business incidental to the business activities under subparagraph 1
through 7, and
9. Other businesses necessary for the achievement of its purpose.
CREDIT UNIONS ACT
35
Article 78 (Types of Business, etc.)
(1) The National Federation shall carry out the following business
activities in order to achieve its purpose of business: 1. Guidance, coordination, survey, research, and public relations
relating to the business of unions;
2. Educational programs for the union members and the executives
and employees of unions;
3. Inspection and supervision over unions;
4. Supports to the business of unions;
5. Credit service:
(a) Receipt and management of deposits, installment savings,
repayment reserve, etc. from unions;
(b) Lending funds to unions;
(c) Domestic and foreign exchange services for unions and their
members;
(d) Vicarious execution of the business of the State, a public
organization or a financial institution;
(e) Payment guarantee for unions and discount of notes for unions;
(f) Underwriting and sale of State bonds and local government
bonds
under Article 4 (3) of the Capital Market and Financial
Investment Business Act;
(g) Issuance and management of electronic means for direct payment
and settlement of such payments under the Electronic Banking
Act; and
(h) Issuance, management, sale of electronic means for advance
payment and settlement of such payments under the Electronic
Banking
Act;
6. Mutual aid service for unions and their members;
7. Business commissioned or subsidized by the State or a public
organization;
8. Business incidental to the business activities under subparagraph
1 through 7, and
9. Other businesses necessary for the achievement of its purpose.
<
(2) The National Federation may borrow funds for carrying on its business
CREDIT UNIONS ACT
36
activities under paragraph (1).
(4) The union members' use of the services shall be deemed to be the
use by the unions themselves.
(5) The National Federation shall, whenever it intends to borrow a fund
(excluding the cases prescribed by the Presidential Decree,
considering
the purpose, size, etc. of loan) or invest a fund (excluding the cases prescribed
by the Presidential Decree, considering
the purpose, size, etc. of
investment), obtain an approval of the Financial Services Commission in
advance.
(1) The National Federation may allow persons who are not unions to use
the service under Article 78 (1) 5 (b) (applicable only
to the portion of
loans not lendable by a union due to the limit of loan to one person under
the provision of Article 42) or the
service under subparagraph 6 of said
paragraph. In this case, the terms "unions" in Article 78 (1) 5 (b) and
"unions and their
members" shall be construed as "persons who are not
unions."
(2) The loan size, the limit of loan to one person, etc. in lending a loan
under the provision of paragraph (1) shall be prescribed
by the Presidential
Decree.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 79 (Investment and Management of Fund)
(1) The National Federation shall invest and manage the fund including
the deposits, installment savings, repayment reserve, etc.
received from
unions under the provision of Article 78 (1) 5 (a) in any of the following
manners:
1. Lending loans to unions;
2. Purchase of national bonds, public bonds, corporate bonds, and other
securities;
3. Deposit with a financial institution specified by the Presidential Decree;
or
4. Other manners prescribed by the Presidential Decree.
(2) The classes and limit of securities that the National Federation may
CREDIT UNIONS ACT
37
purchase under the provision of paragraph (1) 2 shall be prescribed by
the Presidential Decree.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 80 (Establishment of Personnel Management Committee)
(1) The
National Federation may have the personnel management committee
for personnel exchange, etc. between unions.
(2) The matters concerning the organization and management of the
personnel management committee shall be prescribed by the bylaws
of the
National Federation.
SECTION 4 CREDIT UNION DEPOSITORS PROTECTION
FUND
Article 80-2 (Establishment, etc. of the Credit Union Depositors Protection
Fund)
(1) The National Federation shall establish and manage the fund for
protection of credit union depositors (hereinafter referred
to as the "fund")
at the National Federation in order to guarantee the refund of deposits
and installment savings paid by union
members (including non-members
under Article 40; hereafter referred to as "union members, etc." in this
Section), separate deposits
to clear cashier's checks of the National
Federation, etc. (hereinafter referred to as "deposits, etc.") up to the amount
prescribed
by the Presidential Decree and promote the healthy growth of
unions.
(2) Any union and the National Federation shall join the fund under
paragraph (1).
(4) The National Federation shall pay deposits, etc. under paragraph (1)
in subrogation of a union or other accounts of the National
Federation
as prescribed by the Presidential Decree, if the union or other such accounts
are unable to pay such deposits, etc.
to its members, etc.
(5) Necessary matters concerning the organization, management, etc. of
the fund management committee under the provision of paragraph
(3) shall
CREDIT UNIONS ACT
38
be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 80-3 (Raising, Management, etc. of Fund)
(1) The fund shall be raised from the following sources:
1. Contributions paid by unions;
2. Funds contributed, transferred and borrowed from other accounts of
the National Federation;
3. Borrowed loans as prescribed by the Presidential Decree;
4. Gains accrued from management of the fund; and
5. Other revenue.
(2) Necessary matters concerning the raising and management of the fund
under each subparagraph of paragraph (1)
shall be prescribed by the
Presidential Decree.
(3) A union and other accounts of the National Federation may not claim
the refund of the contribution paid in accordance with the
provision of
paragraph (1) 1 and 2.
(1) The National Federation shall, if it pays by subrogation under the
provision of Article 80-2 (4), acquire the rights held by
the members, etc.
of the union within the extent of the amount paid.
(2) The National Federation may, on behalf of the members,
etc. of a union,
set off the claims held by such members, etc. for deposits, installment
savings, etc. (excluding the claims put
as security for the members
themselves or others) against their obligations (excluding obligations of
surety), as of the public
notification date of the payment.
(3) The National Federation may withhold the payment for the amount
prescribed by the Presidential
Decree for obligations of surety owed by
the members, etc. to the union, notwithstanding the provision of Article
80-2 (4).
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 80-5 (Exercise of Right to Claim Damages, etc.)
(1) The National
Federation may, if it makes a payment by subrogation
under the provision of Article 80-2 (4), demand the union to claim damages
against the executives and employees, former or incumbent, of the union,
who are found liable for the insolvency of the union (including
its legal
CREDIT UNIONS ACT
39
entity in liquidation or bankruptcy for the purpose of this Article only),
a person who falls under any of subparagraphs of Article
401-2 (1) of the
Commercial Act, or any other third party.
(2) The National Federation may claim damages in subrogation of a union
immediately, if the union does not follow its demand under
the provision
of paragraph (1).
(3) The National Federation may conduct an investigation into the business
affairs and the status of assets of a union, if necessary
for demanding
to compensate for damages and exercising by subrogation the right to claim
for damages under the provisions of paragraph
(1) and (2).
(4) If a judgment is given in favor of the National Federation as a result
of its exercise by subrogation of a right
to claim for damages under the
provision of paragraph (2), the union concerned shall pay all expenses
incurred therefrom.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
SECTION 5 ACCOUNTING
Article 81 (Business Budget, Settlement of Accounts, etc.)
(1) The National Federation shall prepare the business plan and budget
in writing every fiscal year, and shall obtain an approval of the general
meeting.
(2) The National Federation shall have the accounting audit by an auditor
as defined in the provision of Article 3 of the Act on
External Audit of
Stock Companies every fiscal year.
(3) The National Federation shall submit the report on the settlement
of accounts for each fiscal year, the audit report by the
audit committee,
and the auditor's report by an independent auditor for approval within
three months after the end of the corresponding
fiscal year.
(4) The National Federation shall submit the report on the settlement
of accounts and the auditor's report approved
under the provision of
paragraph (3) to the Financial Services Commission within two weeks after
the closing of its annual general
meeting.
(5) The provisions of Article 46, 47 (1) and (2), 49 through 51, 52 (1),
and 53 shall apply mutatis mutandis to the National Federation.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
CREDIT UNIONS ACT
40
Article 82 (Reduction of Invested Capital)
The National Federation may reduce the amount of its capital with a
resolution of the general meeting, if it suffers losses continuously
over
several fiscal years and there is no reserve available for offset.
CHAPTER IV SUPERVISION
Article 83 (Supervision by the Financial Services Commission, etc.)
(1) The Financial Services Commission shall supervise the business
affairs
of unions and the National Federation, and may issue an order necessary
for supervision.
(3) The Governor of the Financial Supervisory Service may demand a union
or the National Federation to submit a report or data relating
to its business
affairs or assets, dispatch a person concerned to appear before the Service
to state his/her opinion, if the Governor
considers it necessary for the
inspection under the provision of paragraph (2).
(4) A person who conducts an inspection under the provision of paragraph
(2) shall present a certificate showing his/her authority
to the people
concerned.
Article 83-2 (Public Disclosure of Business Management)
Every union shall publicly disclose the important information and data
concerning its business management status as prescribed by the Financial
Services Commission.
41
[This Article Newly Inserted by Act No. 5739, Feb. 1, 1999]
Article 83-3 (Guidelines for Soundness in Business Management)
(1)
Every union and the National Federation shall comply with the guidelines
for soundness in business management established by the
Financial Services
Commission pursuant to the provisions of Presidential Decree concerning
the following matters in order to maintain
soundness in their business
management and prevent a fraud or an accident in financial transactions:
1. Matters concerning soundness in financial structure;
2. Matters concerning soundness in assets;
3. Matters concerning accounting and settlement of accounts;
4. Matters concerning risk management; and
5. Other matters necessary for securing the soundness in business
management.
(2) The Financial Services Commission may, if it finds that the soundness
in business management of the National Federation is likely
to be severely
impaired because of its failure in meeting the guidelines for soundness
in business management under the provision
of paragraph (1) or any other
cause, issue an order to take a measure for improving the state of its business
management by increasing
its capital, reducing its assets, etc.
(1) All unions shall submit a monthly report with the details of business
affairs in the form prescribed by the Governor of the
Financial Supervisory
Service to the National Federation Chairperson by the end of next month.
(2) The report under the provision
of paragraph (1) shall be signed or
sealed by the representative and the officer in charge or their deputies.
(3) The provisions
of paragraphs (1) and (20 shall apply mutatis mutandis
to the National Federation. In this case, the term "National Federation
Chairperson" in paragraph (1) shall be construed as the "Governor of the
Financial Supervisory Service."
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 84 (Administrative Disposition against Executives and Employees
(1) The Financial Services Commission may require a union or the National
Federation to take any of the following dispositions against
an executive
CREDIT UNIONS ACT
42
or an employee of the union or the National Federation who fails or omits
to follow a procedure or perform his/her duty in compliance
with this Act,
an order issued under this Act, the articles of association or a regulation:
1. Re-election, suspension of performance of duties, or censure, in case
of an executive;
2. Disciplinary dismissal, suspension from office, salary reduction, or
censure, in case of an employee; or
3. Caution or warning, in case of an executive or an employee.
(2) An employee or an employee of a union or the National Federation
shall, upon the demand for the disposition of re-election or disciplinary
dismissal of the executive or employee under the provisions
of paragraph
(1) and Article 89 (7) 1, be subjected to the suspension from office for
the period of time beginning on the date
when such demand is made and
ending on the action is finally taken.
(3) If there is no executive who can execute the business affairs of a union
or the National Federation, the Financial Services
Commission may appoint
an ad hoc executive.
(4) When an ad hoc executive is appointed under the provision of paragraph
(3), the union or the National Federation shall register
the appointment
without delay: Provided, That the Financial Services Commission may
request the register office having jurisdiction
over the address of the principal
place of business of the union or the National Federation to make such
registration, if the union
or the National Federation neglects to file for
the registration.
Article 85 (Administrative Disposition against a Union, etc.)
(1) The Financial Services Commission may take a disposition under
one
of the following subparagraphs, if it finds that the soundness in business
management of a union or the National Federation
is likely to be impaired
because of its violation of this Act or an order issued under this Act:
1. Caution or warning to the union or the National Federation;
2. Order for correction of such violation; or
CREDIT UNIONS ACT
43
3. Partial suspension of its business for a period of time not exceeding
six months.
(2) The Financial Services Commission may order the suspension of the
entire business of a union for a period of time not exceeding
six months
or revoke the authorization for establishment of a union, if the union falls
under one of the following subparagraphs:
1. If it has obtained the authorization for establishment in a false or
fraudulent means;
2. If it violates or breaches a provision or a condition of the authorization;
3. If it continues its business during the period of suspension of business;
4. If it fails or omits to follow the order for correction issued under the
provision of paragraph (1) 2;
5. If the number of its members fails to reach one hundred persons
continuously for one year or longer;
6. If the aggregate of capital invested in the union fails to reach the amount
prescribed by categories under subparagraphs of Article
14 (4)
continuously for one year or longer;
7. If it fails to continue its business for one year or longer without a justifiable
ground; or
8. If it fails to file for the registration of its establishment under the
provision of Article 4 within six months after the authorization
for
establishment is given.
(3) The Financial Services Commission shall hear the opinion of the National
Federation Chairperson in issuing an order for the
suspension of the entire
business of a union or revoking the authorization for establishment of a
union under the provision or
paragraph (2).
[This Article Wholly Amended by Act No. 6204, Jan. 28, 2000>
Article 86 (Management under Administratorship)
(1) The Financial Services Commission may appoint an administrator for
management of a union, if the union falls under any of the
following
subparagraphs and thus is highly anticipated to cause serious damages
to its members' interests: 1. If it is anticipated as a result of the inspection conducted under the
CREDIT UNIONS ACT
44
provision of Article 83 (2) that its equity capital is likely to be impaired
completely because the union has illegal or non-performing
loans as
prescribed by the Presidential Decree, but it is difficult for it to recover
them within a short period of time by an
ordinary way:
(a) Deleted; and
2. If it is anticipated difficult for the union to promote to normalize its
business on its own due to a loss in its assets caused
by an unlawful
or wrongful conduct of an executive or an employee of the union;
3. If there is a rush of demands for withdrawal of the deposits and installment
savings in the union or if the union is brought down
to the state that
it is not able to pay back the deposits and installment savings because
of a significant danger of bankruptcy
or an unlawful or wrongful conduct
of its executive or employee;
4. If it is found as a result of the inspection under the provision of Article
83 (2) that it falls within the criteria as prescribed
by the Presidential
Decree, when the appropriateness of its capital, the soundness of its
assets, etc. are considered, although
it does not falls under any of
subparagraph 1 through 3; or
5. If the National Federation Chairperson recommends, as a result of
the analysis and evaluation of its business performance or the
inspection
conducted under the provisions of Article 89 (3) and (6), that it is
necessary to subject it to the management under
administratorship.
In this case, the Financial Services Commission shall confirm whether
or not it falls under one of subparagraph
1 through 4.
(2) Once the management under administratorship under the provision
of paragraph (1) commences, the Financial Services
Commission shall
suspend the payment for obligations or suspend the performance of
executives' duties for a period of time not
exceeding six months, and shall
require the administrator to inspect the current status of assets of the
union (hereinafter referred
to as "asset inspection").
(4) The Financial Services Commission may request the head of a central
administrative agency to furnish it with the data necessary
for the measures
under the provision of Article 86-2. In this case, the head of the central
CREDIT UNIONS ACT
45
administrative agency shall, upon the receipt of such a request, respond
to such a request properly unless there is an extraordinary
circumstance
otherwise.
Article 86-2 (Qualification, Authority, etc. of Administrator)
(1) A person who has an interest in or a special relationship with
a union
as prescribed by the Presidential Decree may not be appointed as the
administrator of the union under the provision of
Article 86 (1) or 86-4
(5) (hereinafter referred to as the "administrator").
(2) The administrator shall have an authority to execute the business affairs
of the union subjected to the management under administratorship
and
manage and dispose of its assets in accordance with the purpose of the
appointment or an authority to manage and dispose of
the assets, liabilities,
etc. of the union within the scope of the business affairs relating to a decision
made on the assignment
of contracts. In this case, the administrator may
not assert his/her authority to a third party in doing a legal act such as
disposition
of assets of the union, unless he/she completes the registration
under the provision of Article 86-3 or 86-4 (6).
(3) The administrator shall search for the assets of executives or employees
CREDIT UNIONS ACT
46
found liable for illegal or non-performing loans (including former executives
or employees) or debtors, and shall take necessary
measures including
an application for provisional seizure, if necessary for securing the claims
for the illegal or non-performing
loan.
(4) The Financial Services Commission has an authority to remove an
administrator, if considered necessary.
(1) When the management under administratorship commences in
accordance with the provisions of Article 86, the Financial Services
Commission shall, without delay, notify the district count having
jurisdiction over the address of the principal place of business
of the union
subject to the management under administratorship of the purport of such
measure, and shall request the register office
having jurisdiction over the
addresses of the principal place of business of the union and its branch
offices to complete the registration
of such measure.
(2) The register office shall, upon receiving such a request under the
provision of paragraph (1), complete the registration without
delay.
[This Article Newly Inserted by Act No. 6204, Jan. 28, 2000]
Article 86-4 (Decision on Assignment of Contracts)
(1) If
a union falls under any subparagraph of Article 86 (1), the Financial
Services Commission may decide to assign the contracts (hereinafter
referred to as "assignment of contracts") relating to the business of the
union (hereinafter referred to as the "insolvent union"),
hearing the opinion
of the fund management committee under the provision of Article 80-2
(3).
(2) In making an decision on the assignment of contracts under the provision
of paragraph (1), the Financial Services Commission
shall determine the
CREDIT UNIONS ACT
47
scope, terms, and conditions of contracts to be assigned and the union
to whom the contracts shall be assigned (hereinafter referred
to as the
"assignee-union") as necessary. In this case, the Commission shall obtain
the consent of the assignee-union in advance.
(3) The National Federation may propose to the assignee-union the amount
and conditions of its financial aid on the premise that
the assignee-union
shall perform its obligations under the assignment of contracts.
(4) When the assignee-union convenes the general
meeting to resolve to
consent under the provision of the latter part of paragraph (2), the National
Federation shall notify the
members of the assignee-union in advance of
the matters relating to such as resolution of the general meeting including
the degree
of insolvency of the insolvent union and the measures to be
taken in relation to the assignment of contracts.
(5) The Financial
Services Commission shall appoint an administrator to
the insolvent union against which a decision is made to assign its contracts
in accordance with the provision of paragraph (1).
(6) When the Financial Services Commission appoints an administrator
under paragraph (5), it shall notify the district court having
jurisdiction
over the address of the principal place of business of the insolvent union
of the purport of its appointment without
delay, and shall request the
register office having jurisdiction over the union's principal place of business
and its branch offices
to register the appointment.
(7) The assignment of contracts made in accordance with the decision to
that effect under the provision of paragraph (1) does not
require a resolution
of the board of directors or the general meeting of the insolvent union.
[This Article Newly Inserted by Act
No. 8145, Dec. 30, 2006]
Article 86-5 (Effect of the Decision on Assignment of Contracts)
(1) Where a decision is made to assign
contracts to another union under
the provision of Article 86-4 (1), the assignee-union shall succeed to the
rights, obligations,
and common bond of the insolvent union, as included
in the scope of the decision, as of the time when such a decision is made.
(2) When a decision is made to assign contracts to another union under
the provision of Article 86-4 (1), the insolvent union and
the assignee-union
CREDIT UNIONS ACT
48
shall jointly make a public notification of the substance of such as decision
and the assignment of contracts through two or more
daily newspapers.
(3) When a public notification is made under the provision of paragraph
(2), the assignee-union shall succeed
to the insolvent union's legal relations
with the creditors, debtors, and guarantors who have pledged their property
and other
interested parties who have interests in the assignment of
contracts (hereinafter referred to as "creditors, etc.") on the same
terms
and conditions as before: Provided, That the creditors, etc. may assert
their rights and claims against the assignee-union
on the ground of an
event or cause that has occurred between the insolvent union and them
before the public notification.
(4) When a public notification is made under the provision of paragraph
(2), it shall be deemed that such a public notification
satisfies the requisites
for asserting the assignment of a nominative claim against the obligor under
the provision of Article
450 of the Civil Act: Provided, That creditors,
etc. may assert their rights and claims against the assignee-union on the
ground
of an event or cause that has occurred between the insolvent union
and them before the public notification.
(5) Where a decision is made to assign contracts under the provision of
Article 86-4 (1), the assignee-union shall acquire the rights
relating to
and interests in the real property, transfer of which requires registration,
as of the time when an public notification
is made under the provision
of paragraph (2).
(6) The Financial Services Commission shall require the insolvent union
and the assignee-union to preserve and keep safe the materials
relating
to the assignment of contracts and make them available to creditors, etc.
for inspection. In this case, the guidelines
and procedure necessary for
preserving, safekeeping, and making such materials available for inspection
shall be prescribed by
the Financial Services Commission.
[This Article Newly Inserted by Act No. 8145, Dec. 30, 2006]
Article 87 Deleted.
The Financial Services Commission may file an application for bankruptcy
of a union with the district court having jurisdiction
over the address of
the union's principal place of business, if it is found, as a result of the
CREDIT UNIONS ACT
49
actual inspection of the assets of a union subjected to the management
under administratorship under the provisions of Article 86,
that it is unable
to perform its obligations fully with its own assets and if it falls under
either of the following subparagraphs
or if the contracts of the insolvent
union is completely assigned in accordance with the decision on the
assignment of such contracts:
1. If it is difficult to protect members of the union because there is no
union that desires to acquire the union through a merger;
or
2. If the National Federation concludes that it is difficult for the union
to normalize its business within three years even if a
loan is granted
to the union.
Article 88-2 (Bankruptcy Trustee)
The Financial Services Commission may recommend a person for bankruptcy
trustee to the court, notwithstanding the provisions of
Article 355 of the
Debtor Rehabilitation and Bankruptcy Act, when a union is declared
bankrupt.
(2) A union shall, upon the receipt of the demand for submission of data,
appearance of persons concerned, or making a statement
under the provision
of paragraph (1), respond to the request accordingly without delay.
(3) The National Federation Chairperson
may analyze and evaluate the
data submitted by a union in accordance with the provision of paragraph
(1) in a manner prescribed
by the Financial Services Commission, and
may require the union to publicly notify the results thereof.
50
and evaluation conducted under the provision of paragraph (3), for the
union to conduct sound management because the union falls
under the
criteria prescribed by the Financial Services Commission pursuant to the
provisions of the Presidential Decree.
(7) The National Federation Chairperson may order a union to take a
necessary measure including correction, or may take any of the
following
measures him/herself, according to the results of the inspection under the
provision of paragraph (6):
1. Demand to take a measure against an executive or an employee involved
under the provision of Article 84 (1);
2. Appointment of an ad hoc executive under the provision of Article 84
(3);
3. Request for the registration of an ad hoc executive under the proviso
of Article 84 (4);
4. Measures under the provision of Article 85 (1); or
5. Suspension of the entire business under the provision of Article 85
(2).
(8) The National Federation Chairperson shall report to the Financial
Services Commission the matters necessary for imposition of
a fine for
negligence, if he/she discovers an act subject to imposition of a fine for
negligence under any of Article 101 (1) as
a result of the inspection conducted
to a union under the provision of paragraph (6).
51
affairs in violation of the procedure or in breach of its duties prescribed
by this Act, an order issued under this Act, the articles
of association,
or a regulation may request the National Federation to conduct an inspection
of the union, if they obtain the consent
of at least one percent of all union
members, or the Governor of the Financial Supervisory Service to conduct
it, if they obtain
the consent of at least three percent of all union members.
(2) Unions that suspect that the National Federation executes its business
affairs in violation of the procedure or in breach of its duties prescribed
by this Act, an order issued under this Act, the articles
of association,
or a regulation may request the Governor of the Financial Supervisory
Service to inspect the National Federation
to with the consent of at least
three percent of all member unions.
(3) The Governor of the Financial Supervisory Service or the National
Federation Chairperson shall, upon the receipt of the request
for inspection
under the provision of paragraph (1) or (2), conduct an inspection without
delay.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
Article 90 Deleted.
52
CHAPTER V SUPPLEMENTARY PROVISIONS
Article 91 Deleted.
(1) The Government shall provide supports necessary for the business of
unions and the National Federation for unions' growth, and
shall provide
the facilities of the State or a public organization preferentially for the
use by unions and the National Federation.
(2) The central government or a local government may grant a subsidy
necessary for the business of unions and the National Federation
within
the limit of its budget.
Article 93 (Prohibition of Involvement in Politics)
Neither a union nor the National Federation may do any act to involve
in politics.
Article 94 (Contracts with Foreign Institutions)
The National Federation may enter into insurance agreements, etc. with
international organizations in connection with its business
to manage its
fund safely.
Article 95 (Special Exceptions to the Agricultural Cooperatives, etc.)
(1) The following legal entities shall be deemed to be credit
unions under
this Act when they engage in the business activities set forth in Article
39 (1) 1 through 6:
1. Local agricultural cooperatives and local livestock cooperatives
(including commodity cooperatives that provide credit service)
established under the Agricultural Cooperatives Act;
2. Local fisheries cooperatives (including the cooperatives that provide
credit service under the provision of Article 5 of Addenda
of the
Amendment to the Fisheries Cooperatives Act (Act No. 4820))
established under the Fisheries Cooperatives Act;
3. Deleted; 4. Forestry cooperatives established under the Forestry Cooperatives Act;
and
5. Deleted.
53
be carried out by the national federations established under the Acts set
forth in subparagraphs of paragraph (1) respectively (including
the National
Forestry Cooperatives Federation; the same shall apply hereinafter for
the purpose of this Article).