|
|
Home
| Databases
| WorldLII
| Search
| Feedback
Laws of the Republic of Korea |
1
ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT BUSINESS AND PROTECTION OF FINANCE USERS
Presidential Decree No. 17765, Oct. 28, 2002
Amended by Presidential Decree No. 18312, Mar. 17, 2004 Presidential Decree No. 19019, Aug. 31, 2005
Presidential Decree No. 20313, Oct. 4, 2007
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20758, Mar. 28, 2008
Article 1 (Purpose)
The purpose of this Decree is to provide for the matters delegated by the
Act on Registration of Credit Business and Protection
of Finance Users
and the matters necessary for the enforcement thereof.
Article 2 (Scope of Exclusion from Credit Business)
The term "cases as prescribed by the Presidential Decree" as used in the
proviso
to Article 2 (1) of the Act on Registration of Credit Business and
Protection of Finance Users (hereinafter referred to as the "Act")
means
an event or causes that fall under one of the following items:
1. Deleted; or 2. Where one of the following events or causes occurs:
(a) Where an employer lends a loan to his/her employee;
(b) Where a trade
union established under the Trade Union and Labor
Relations Adjustment Act lends a loan to its member;
(c) Where the State or a
local government lends a loan; or
(d) Where a loan is granted within the extent of a purpose prescribed
by the articles of association
of a non-profit legal entity established
ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT
BUSINESS AND PROTECTION OF FINANCE
USERS
2
under the provisions of the Civil Act or any other Act.
Article 2-2 (Procedures for Registration and Renewal of Registration)
A
credit service provider who intends to registrate his/her credit service
business pursuant to Article 3 (1) of the Act or renew
his/her credit service
business registration pursuant to paragraph (6) of the said Article, shall
submit an attached form of application
for registration of credit service
business accompanying a certified copy of the corporate register (limited
to the case of a corporate)
to the Special Metropolitan City Mayor, a
Metropolitan City Mayor, or a Do Governor (hereinafter referred to as the
"Mayor/Do Governor")
who has administrative jurisdiction over the business
office.
[This Article Newly Inserted by Presidential Decree No. 20758, Mar. 28, 2008]
Article 3 (Report on Closedown of Business)
A credit service provider shall, upon the closedown of its business, submit
a report on the closedown in writing (including an electronic
document)
to the Mayor/Do Governor who has administrative jurisdiction over the
business office, within fourteen days after the
closedown date in accordance
with the provisions of Article 5 (2) of the Act.
1. Registration number of credit business;
2. Overdue interest rates;
3. Terms and conditions concerning acceleration, if any; and
4. Terms and conditions concerning the repayment order of the principal
and interests of a loan, if any.
(2) The term "documents related to the agreement as prescribed by the
Presidential Decree" as used in Article 6 (2) of the Act means
the following
documents: 1. Loan agreement ledger;
2. Records of disbursements and receipts of principal, interests, and
incidental expenses to and from a debtor by dates; and
3. Documents submitted by an opposite contractual party (including a
guarantor) in connection with the execution of the loan agreement
ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT
BUSINESS AND PROTECTION OF FINANCE USERS
3
including documents related to security (also, a written demand, if
the documents have been returned upon receiving a demand from
the
debtor in writing for returning the documents after completing the
repayment for his/her obligations).
Article 5 (Limitation to Interest Rates)
(1) The term "small corporation defined by the Presidential Decree" as
used in Article 8 (1) of the Act means a small corporation
as defined in
the provisions of Article 2 (2) of the Framework Act on Small and Medium
Enterprises. 1. Expenses for institution of security right; and
2. Expenses for credit inquiries (which shall be limited to the inquiries
made to a person who holds a permission for the business
under Article
4 (4) 1 of the Use and Protection of Credit Information Act about an
opposite contractual party's credit).
Article 6 (Public Notice of Terms and Conditions of Loan)
(1) The term "important information as prescribed by the Presidential
Decree" as used in Article 9 (1) of the Act means the following informations:
1. Registration number of credit business;
2. Overdue interest rates; and
3. Terms and conditions concerning incidental expenses related to a loan
agreement.
(2) The term "matters as prescribed by the Presidential Decree" as used
in Article 9 (2) 5 of the Act means the following informations:
1. Fact that the credit service provider is a loan broker, if it is a person
who engages in brokerage for money loans;
2. Address and telephone number of its business office; and
ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT
BUSINESS AND
PROTECTION OF FINANCE USERS
4
3. Name of the Special Metropolitan City, a Metropolitan City, or a Do
where it is registered as a credit business.
Article 7 (Credit Business subject to Inspection Demanded to Governor
of Financial Supervisory Service)
The term "event prescribed by the Presidential Decree" as used in Article
12 (3) of the Act means where there is one of the following
events: 1. In the event that it is difficult for the Mayor/Do Governor to make
an inspection under the provisions of Article 12 of the Act
of a credit
service provider who is registered with two or more Mayor/Do Governor;
2. In the event that the monthly average balance of loan amount of a
credit service provider as of the end of each month exceeds
a certain
amount prescribed by the Financial Services Commission;
3. In the event that the business activity of a credit service provider violates
an Act or any of its subordinate statutes, that
there is a high risk
of causing an disadvantage to its opposite contractual party (including
a guarantor, if there is a guarantee
agreement executed in connection
with the loan agreement), and that there is an institution subject to
inspection by the Financial
Supervisory Service under Article 38 of
the Act on the Establishment, etc. of Financial Services Commission
(hereinafter referred
to as a "financial institution) involved in the
transaction; or
4. In the event that it is suspected that the inspection under Article
12 (4) of the Act is to be evaded by means of a spin-off company
including
cases where an identical person is a large stockholder of several registered
companies.
Article 7-2 (Subject of Inspection by Governor of Financial Supervisory
Service)
(1) The term "time prescribed by the Presidential Decree" as used in Article
12 (4) of the Act means the case falling under any
of following subparagraphs:
1. Where a credit service provider who is a corporate has been registered
with two or more Mayor/Do Governor; or
2. Where the asset scale of a credit service provider who is a corporate
is 7 billion won or more as of the end of the preceding
year.
(2) The Governor of Financial Supervisory Service may request for materials
ENFORCEMENT DECREE OF THE ACT ON REGISTRATION
OF CREDIT
BUSINESS AND PROTECTION OF FINANCE USERS
5
related with any of subparagraphs of paragraph (1) to the Mayor/Do
Governor.
[This Article Newly Inserted by Presidential Decree No. 20758, Mar. 28, 2008]
Article 8 (Contents and Method of Public Notice)
The Mayor/Do Governor shall prepare a public notice stating that the
registration may be revoked in accordance with the provisions
of Article
13 (2) 5 of the Act, if a credit service provider fails to notify its exact
location, and shall publish the notice in
the official gazette of the Special
Metropolitan City, a Metropolitan City, or a Do or a daily newspaper.
Article 9 (Maximum Interest
Rates)
The term "guideline set up by the Presidential Decree" as used in Article
15 (1) of the Act means any of the following subparagraphs,
only where
a credit financial institution receives overdue interests exceeding 25/100
per annum. In this case, the interest rate
may not exceed 49/100 per annum:
1. Overdue interest rates set up by the Bank of Korea for a financial
institution under the provisions of Article 11 of the Bank
of Korea Act;
or
2. Overdue interest rates set up by the Financial Services Commission
for each financial business sector reflecting peculiarities
of each financial
business sector, where any credit financial institution other than the
financial institution under subparagraph
1 is involved.
Article 10 (Registration Fee, etc.)
(1) A person who wants to attain a registration of credit business shall
pay one hundred thousand Won as registration fee for each
of his/her business
offices in accordance with the provisions of Article 17 (1) of the Act: Provided,
That the Mayor/Do Governor
may adjust the amount by the Municipal
Ordinance within the extent not exceeding one hundred thousand Won.
(2) The term "inspection
fee as prescribed by the Presidential Decree" as
used in Article 17 (2) of the Act means the amount set up by the Financial
Services
Commission within the extent of 0.1 percent of the yearly average
balance of loans as of the inspection date: Provided, That the
Mayor/Do
Governor may adjust the amount by the Municipal Ordinance within the
extent not exceeding 0.1 percent of the yearly average
balance of loans.
6
of Disputes)
(1) The committee for conciliation of disputes under the provisions of Article
18 (1) of the Act shall be composed of five members
appointed by the
Mayor/Do Governor from among the persons who fall under any of the
followings:
1. A person who has a career of working for a financial institution for
at least three years;
2. A lawyer or a certified public accountant;
3. A person who has a career of working for a consumer organization for
at least three years;
4. A public official who has a career of working in the field of finance,
credit business, or consumer protection for at least three
years; or
5. A person who majors in finance or law and has a career of full-time
lecturer or higher in a university or college for at least
three years.
(2) The chairperson shall be elected by and among the members, and the
term of the chairperson and members shall be
one year: Provided, That
they may be consecutively appointed.
(3) The committee for conciliation of disputes may adopt a bill for conciliation
of a dispute with the concurrent vote of two-thirds
of the incumbent members,
and may recommend the parties to the dispute to accept the bill for
conciliation of the dispute.
(4) Further details necessary for efficient management of the committee
for conciliation of disputes shall be prescribed by the
committee for
conciliation of disputes, in addition to the provisions of this Decree.
Article 12 (Procedures for Imposition and
Collection of Fine for Negligence)
(1) The Mayor/Do Governor shall investigate and corroborate a violation
in question before imposing
a fine for negligence under the provisions of
Article 21 (3), and then shall serve a person subject to disposition of the
fine
for negligence with a written notice specifically stating the facts of
violation, the amount of the fine for negligence, etc. and
demanding the
payment accordingly.
7
no objection against the disposition, if there is no statement made by him/her
within the prescribed period of time.
(3) The fine for negligence shall be imposed in accordance with the guidelines
for the imposition of fine for negligence in the
table attached hereto.
(4) The Mayor/Do Governor may increase or decrease the fine for negligence
within the extent of one half
of the amount prescribed in the provisions
of paragraph (3), considering the motive, nature, and frequency of the
violation. In
this case, total amount of the fine for negligence may not
exceed the amount prescribed in Article 21 (1) and (2) of the Act.
(5) The fine for negligence shall be collected in accordance with the procedure
for collection of revenue in the Acts and their
subordinate statutes for
management of national treasury. In this case, the notice of demand for
payment shall contain the method
and period of time for raising an objection,
etc.
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability of Limitation to Interest Rates)
The
amended provisions of Article 5 (3) and of the latter part of Article
9 shall apply to loan agreements made or renewed on or after
the date
when this Decree enters into force.
ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT
BUSINESS AND PROTECTION OF FINANCE USERS
8
ADDENDA
This Decree shall enter into force on the date of its promulgation: Provided,
That among Presidential Decrees amended under Article
2 of these Addenda,
the amended provisions of any Presidential Decree which is promulgated
before this Decree enters into force,
but which does not enter into force
shall enter into force on the date when such Presidential Decree does so.
Article 2 Omitted.
ADDENDUM
9
[Attached Table]
Applicable
Article
Amount of
Fine for
Negligence
1. A person who fails to file for the registration of
changes specified in Article 3 (2) 1 through 3 of the
Act in violation of
the provisions of Article 5 of the
Act.
Article 21 (1) 1 of
the Act
5 million
Won
2. A person who fails to file for the registration of
changes specified in Article 3 (2) 4 and 5 of the Act
or submit a report of
the closedown of business, in
violation of the provisions of Article 5 of the Act.
Article 21 (1) 1 of
the Act
15 million
Won
3. A person who fails to deliver an agreement in
violation of the provisions of Article 6 (1) of the Act
or delivers an agreement
without some or all
descriptions specified in subparagraph 1 through 11
of the same paragraph of the said Article of the Act.
Article 21 (1) 2 of
the Act
5 million
Won
4. A person who fails to post a public notice or make
an explanation in violation of the provisions of Article
9 (1) of the Act.
Article 21 (1) 3 of
the Act
5 million
Won
5. A person who makes an advertisement in violation
of the provisions of Article 9 (2) of the Act.
Article 21 (1) 4 of
the Act
15 million
Won
6. A person who inquires a debtor's related person
about the debtor's whereabout or makes the facts
of obligations known to a debtor's related person,
in violation of the provisions of Article 10 (2) of the
Act.
Article 21 (1) 5 of
the Act
15 million
Won
ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT
BUSINESS AND PROTECTION OF FINANCE USERS
10
7. A person who fails to respond properly to, or
interferes with, the inspection under the provisions
of Article 12 (1) through
(3).
Article 21 (1) 6 of
the Act
15 million
Won
8. A person who fails to preserve an agreement and
documents related to the agreement in violation of
the provisions of Article
6 (2) of the Act.
Article 21 (2) 1 of
the Act
5 million
Won
9. A person who commits an act of claiming collection
in violation of the provisions of Article 10 (1) 3 of
the Act.
Article 21 (2) 2 of
the Act
5 million
Won
10. A person who fails to disclose his/her assigned
job and name in violation of the provisions of Article
10 (3) of the Act.
Article 21 (2) 3 of
the Act
5 million
Won
AsianLII:
Copyright Policy
|
Disclaimers
|
Privacy Policy
|
Feedback
URL: http://www.asianlii.org/kr/legis/laws/edotaorocbapofu835