|
|
Home
| Databases
| WorldLII
| Search
| Feedback
Laws of the Republic of Korea |
ENFORCEMENT DECREE OF THE BASIC WORKERS WELFARE ACT
Presidential Decree No. 17434, Dec. 27, 2001
Amended by Presidential Decree No. 18312, Mar. 17, 2004 Presidential Decree No. 19074, Sep. 30, 2005
Presidential Decree No. 19513, Jun. 12, 2006
Presidential Decree No. 20681, Feb. 29, 2008
Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated
by the Basic Workers Welfare Act and those necessary for the
enforcement
thereof.
Article 2 (Central Workers Welfare Policy Committee Members
"Those prescribed by the Presidential Decree" in Article 8 (2)
of the
Basic Workers Welfare Act (hereinafter referred to as the
"Act") mean persons specified in the following subparagraphs:
1. For members representing workers, those recommended
by a confederation of trade unions designated by the
Minister of Labor;
2. For members representing employers, those recommended
by a nationwide employers' association designated by the
Minister of Labor;
and
3. For members representing the public interest, those specified
in the following items:
A. The Vice Minister of Strategy and Finance;
B. A person with extensive knowledge and experience
with workers' welfare; and
C. A person recommended by a civic group (referring to
a non-profit private organization under Article 2 of the
Assistance for
Nonprofit Non-Governmental Organizations
Act).
Article 3 (Term of Members)
Members (excluding members referred to in item A of
subparagraph 3 of Article 2) of the Central Workers Welfare
Policy Committee
(hereinafter referred to as the "Central
- 2 -
Committee") under Article 2 shall serve a two-year term: Provided
that substitute members filling vacancies shall serve only the
remaining term of their predecessor.
Article 4 (Duties of Chairman)
(1) The Chairman (hereinafter referred to as the "Chairman")
of the Central Committee shall represent the Committee and
supervise
its affairs.
(2) If the Chairman cannot perform his/her duties for some
inevitable reason, a member representing the public interest and
designated
by the Chairman shall act on his/her behalf.
Article 5 (Operation of Central Committee)
(1) The Chairman shall convene and preside over meetings
of the Central Committee.
(2) Central Committee meetings shall be held with the
attendance of the majority of its members and decisions shall be
made upon
the approval of the majority of those present.
(3) The Central Committee may, when deemed necessary for
the deliberation of its
agendas, request related administrative
agencies or organizations to submit documents or summon
relevant public officials or experts,
etc., to hear their opinions.
(4) The Central Committee shall have a secretary to handle
its affairs and the secretary shall be
appointed by the Chairman
from among public officials in the Ministry of Labor.
(5) Members in attendance at a meeting and relevant
individuals summoned pursuant to paragraph (3) may be given
allowances and travel expenses within the limits of the budget:
Provided
that this shall not apply to public officials attending a
meeting directly related to their responsibilities.
(6) Except as provided
in this Decree, necessary matters
concerning the operation, etc. of the Central Committee shall be
determined by the Chairman after
resolution at the Central
Committee.
Article 6 (Institutions Engaging in Loan Activities)
The "other financial institutions prescribed by the Presidential
Decree" in
Article 11 (1) 2 of the Act mean those described in
any of the following subparagraphs:
1. National Agricultural Cooperation Federation under the
Agricultural Cooperatives Act;
2. National Federation of Fisheries Cooperation under the
Fisheries Cooperatives Act;
3. Korea Development Bank under the Korean Development
- 3 -
Bank Act;
4. Industrial Bank of Korea under the Industrial Bank of
Korea Act;
5. Community credit cooperatives and the Korean Federation
thereof under the Community Credit Cooperatives Act;
and
6. Securities companies under the Securities and Exchange
Act.
Article 7 (Guarantee Fee)
(1) The guarantee fee prescribed in Article 23 of the Act
may differ depending on the credit rating of the person whose
credit
is to be guaranteed, amount and period of guarantee, etc.
(2) Necessary matters concerning the amount of the
guarantee fee and
the collection thereof under paragraph (1)
shall be determined by the Minister of Labor.
Article 8 (Entrustment of Right to Indemnify)
(1) The financial institutions, etc., to which the Korea Labor
Welfare Corporation (hereinafter referred to as the "Corporation")
under the Industrial Accident Compensation Insurance Act may
entrust the exercise of the right to indemnity, pursuant to
Article
25 (3) of the Act, shall be the financial institutions
engaging in loan activities, set forth in Article 11 of the Act,
and operators
of credit information business under subparagraph
4 of Article 2 of the Use and Protection of Credit Information
Act.
Article 9 (Disposal of Deficits)
If the Corporation is unable to recover debt, even after
exercising the right to indemnity pursuant to Article 25 (3) of
the Act,
due to reasons falling under any of the following
subparagraphs, it may dispose the deficits on that debt:
1. If the exercise of the right to indemnity is extremely
difficult by reason of death, missing or disappearance of
the debtor or
declaration of bankruptcy of the debtor;
2. If the debtor goes insolvent;
3. If the grounds of invalidity exist with respect to the right
to indemnity or the statute of limitation on the right to
indemnify
has expired or
- 4 -
4. If the expenses required for recovering the debt exceeds
the estimated debt amount, and therefore there is no
benefit to be gained
from executing the legal proceedings.
Article 10 (Losses)
(1) The maximum rate (If the maximum rate exceeds 20/100
of the annual rate, then an interest rate of 20/100 of the annual
rate)
of default interest on loans payable to the financial
institution concerned, at the time of the fulfillment of
guaranteed obligations
by the Corporation, shall be applied to
any losses described in Article 26 of the Act.
(2) The Minister of Labor may lower the maximum default
interest rate prescribed in paragraph (1) after consideration of
the market
interest rate, employment situations, etc.
Article 11 (Establishment, etc. of Employee Stock Ownership
Association)
(1) A worker who intends to establish an employee stock
ownership association (hereinafter referred to as "association"),
pursuant
to Article 28 of the Act, shall obtain the consent of at
least one-fifth of all employees (excluding persons falling under
the
subparagraphs of Article 29 (1) of the Act; hereinafter the
same shall apply in this Article) in the company concerned and
then
organize an Employee Stock Ownership Association
Preparatory Committee (hereinafter referred to as the "Preparatory
Committee")
which shall perform work described in any of the
following subparagraphs:
1. Drafting of rules;
2. Consultation with the company on matters prescribed by
the Ordinance of the Ministry of Labor;
3. Holding of an inaugural meeting of the association; and
4. Other activities necessary for the establishment of an
association.
(2) The Preparatory Committee shall launch an inaugural
meeting of the association with the majority of workers in
attendance,
affirm the rules of the association and elect its
officers including its representatives.
(3) No later than three weeks after completing the procedures
prescribed in paragraph (2), the Preparatory Committee shall
sign
an agreement on the entrustment of the administration of
the employee stock ownership plan, with a trustee under Article
37 (1)
of the Act.
(4) No later than three weeks after signing the agreement
- 5 -
on the entrustment of the administration of the employee stock
ownership plan pursuant to paragraph (3), the Preparatory
Committee
shall report such signing of agreement to the
Minister of Labor with the relevant documents, such as the
rules under paragraph
(1), attached, as prescribed by the
Ordinance of the Ministry of Labor.
(5) An association may be issued with a certificate in
regards to the report made pursuant to paragraph (4) under the
conditions
prescribed by the Ordinance of the Ministry of
Labor.
Affiliated companies (hereinafter referred to as "affiliated
companies") under the provisions excluding the subparagraphs
of Article
29 (1) of the Act refer to the following companies:
1. An unlisted corporation of which at least 50/100 of the
shares issued are owned by a company that has set up
an association and
2. An unlisted corporation of which at least 50/100 of the
shares issued are owned by an unlisted corporation stated
in subparagraph
(1).
Article 12 (Membership Requirements of Employee Stock Ownership
Association)
(1) The "minority shareholders prescribed by the Presidential
Decree" in the proviso of Article 29 (1) 2 of the Act refer to a
shareholder (in the case of affiliated companies, limited to
shareholders who are employees of the affiliated company) who
owns
shares valued at 300 million won or 1/100 of the total
amount of shares issued by the company concerned or affiliated
company thereof,
whichever is less. In this case, the amount
shall be calculated based on the face value.
(2) The "other persons prescribed by the Presidential Decree"
in Article 29 (1) 3 of the Act refer to those falling under any of
the following subparagraphs:
1. Daily workers under Article 20 of the Enforcement Decree
of the Income Tax Act;
2. Largest shareholders under Article 54-5 (4) 2 of the
Securities and Exchange Act; and
3. Persons with a special relationship with the largest
shareholder as prescribed in items A through I of Article
10-3 (2) 1 of
the Enforcement Decree of the Securities and
Exchange Act.
- 6 -
(1) The representative of an association shall hold a general
meeting at least once a year: Provided that, in cases where
there
are no matters to be decided as described in Article 30
(2) of the Act, a public notification of the operational status of
the
association in accordance to its rules shall substitute for the
holding of a general meeting.
(2) The representative of an association shall convene a
general meeting at the request of at least one-fifth of members
of the
employee stock ownership association (hereinafter referred
to as "association members"), in which the purpose of the
general meeting
is specified, within three weeks of such request.
Article 14 (Contents of Rules)
The rules under Article 30 (2) 1 of the Act shall include the
following matters:
1. Purpose;
2. Title;
3. Location of principal and branch offices;
4. Matters concerning the officers of the association
5. Matters concerning the manner in which voting rights are
exercised
6. Matters concerning the creation and operation of an
employee stock ownership association fund (hereinafter
referred to as an
"association fund");
7. Matters concerning the acquisition and allocation of a
company' own stocks by the association
8. Matters concerning the withdrawal of deposited shares; and
9. Matters concerning the disposition of the remaining
properties upon dissolution of the association.
Article 15 (Operation of Association)
(1) In acquiring and allocating a company's own stocks, the
association shall manage the individual accounts of association
members
(hereinafter referred to as "individual accounts") and
- 7 -
account of the association separately.
(2) In allocating a company's own stocks pursuant to
Articles 32 and 33 of the Act or granting employee stock
options (hereinafter
referred to as "employee stock options")
pursuant to Article 32-2 of the Act, low-income workers and
long-term workers shall be
given priority.
(3) An association shall prepare books and documents on
the following matters at its principal office and keep such
books and documents
for 10 years in order to make them
available to association members:
1. List of association members;
2. Rules
3. Name and address of officers and delegates of the
association
4. Accounting books and documents; and
5. Books and documents with regard to the acquisition and
management of stocks by the association and its
members.
(4) An association shall report to the Minister of Labor
upon transfer of its principal office within three weeks of the
date of
such transfer.
(5) The fiscal year of an association shall follow the fiscal
year of the company concerned.
(6) An association shall report to the Minister of Labor on
its operational status within three months after the end of each
fiscal
year.
Article 16 (Handling of Dividends)
(1) Dividends (including dividends on stock: the same shall
apply in this Article) on the stock allocated to individual
accounts
shall be paid to the association members.
(2) Dividends on stock held in an association account shall
belong to the association.
Article 17 (Voting Rights of Association)
(1) The representative of an association, when exercising
voting rights pursuant to Article 31 of the Act, shall exercise
the voting
rights related to the stocks allocated to individual
accounts in accordance with methods specified in any of the
following subparagraphs:
1. The representative shall set a period of seven days or
- 8 -
longer, and after receiving opinions from association
members on the agenda of a general meeting, or seeing
whether a request to
delegate a voting right has been
made, during that period, exercise the voting right
concerned or delegate it to an association
member; and
2. The voting rights of stocks for which neither opinion nor
request for delegation was made within the period
prescribed in paragraph
(1), shall be exercised in a way
not to affect the voting of the number of stocks
participating in the shareholders' meeting minus the
number of shares for which neither opinion nor request
for delegation was
made.
(2) When exercising the voting rights related to the stocks
held in the association account, the representative of the
association
shall do so in accordance with a method determined
under the rules through consultation between the association
and the company
from among the methods specified in any of
the following subparagraphs:
1. The voting rights shall be exercised in proportion to the
percentage of association members expressing opinions on
the stocks
allocated to individual accounts pursuant to
subparagraph 1 of paragraph (1):
2. The voting rights shall be exercised in a way not to
affect the voting of the number of stocks participating in
the shareholders'
meeting minus the number of shares
held in the association account: or
3. The voting rights shall be exercised in accordance with
opinions determined at a general meeting of the
association.
Article 17-2 (Employee Stock Options)
(1) When calculating the limit of the total number of stocks
for which employee stock options may be granted pursuant to
Article
32-2 (1) of the Act, the number of stocks granted in
accordance to the proviso of the same paragraph shall be
included and the
number of stocks to be issued or transferred
in the case of exercising the employee stock options granted
prior to the date of
resolution as prescribed in the proviso and
main sentence of the same paragraph but not yet exercised as
of the date of resolution
shall be included.
(2) The "consecutive service period prescribed by the
Presidential Decree" in Article 32-2 (6) of the Act means one
- 9 -
year.
(3) The "period prescribed by the Presidential Decree" in the
proviso of Article 32-2 (8) of the Act means three years.
(4) A company
which intends to grant employee stock
options (hereinafter referred to as a "company granting
employee stock options") shall enter
into an agreement with the
association on the following matters. In this case, the association
shall make such an agreement available
to its members and
notify them individually of the key points, number of employee
stock options granted to each association member,
etc:
1. Matters concerning the exercise price of employee stock
options and adjustments thereof;
2. Period for offering and exercising employee stock options;
3. Method of and procedure for exercising employee stock
options;
4. Statements indicating that the transfer or use of employee
stock options as collateral is restricted;
5. Deadline of the implementation by the company granting
employee stock options upon the exercise of employee
stock options
6. Type and number of stocks to be issued or transferred
upon the exercise of employee stock options and
7. Matters concerning the cancellation of a grant of employee
stock options.
(5) A company granting employee stock options may cancel
the grant of employee stock options in any of the following
events: Provided
that in the case of subparagraphs 2 and 3,
such cancellation shall take place pursuant to the decision of
the Board of Directors
as prescribed in the Articles of
Incorporation:
1. If the company concerned is unable to respond to the
exercise of employee stock options by reason of bankruptcy,
dissolution,
etc.
2. If an association member with employee stock options has
inflicted serious damage to the company, either willfully
or negligently;
or
3. If any reason for cancellation occurs as prescribed in
subparagraph 7 of paragraph (4).
(6) The exercise price of employee stock options shall be
determined within the limits of 80/100 or more of the
appraised price
prescribed by the Ordinance of the Ministry:
Provided that if the exercise price of the employee stock options
issued and distributed
is less than the face value of the stocks
- 10 -
concerned, the face value shall serve as the exercise price.
(7) A company granting employee stock options may split
the offering
period into unit periods of six months or one year
and set the period of exercise per unit duration. The exercise
period shall
be not more than seven days from the end date of
the offering period or end date of the unit period.
(8) The number of employee
stock options that can be
exercised by an association member per exercise period shall be
the equally divided number of employee
stock options granted
during the offering period concerned. In this case, the employee
stock options that were not exercised during
the exercise period
shall not be carried forward.
(9) Employee stock options for each association member
shall not exceed 6 million won (calculated based on the exercise
price)
per annum from the date on which such employee stock
options were granted.
(10) If an association member has lost his/her membership,
he shall be prohibited from exercising his/her employee stock
options.
(11) A company granting employee stock options may
provide support to enable association members to reserve funds
necessary to
exercise employee stock options in the association
fund by means of payroll deduction, etc.
Article 17-3 (Borrowing by Association)
(1) The "financial institutions prescribed by the Presidential
Decree" in Article 32-4 (1) of the Act refer to the following
financial
institutions:
1. Financial institutions under the Banking Act;
2. Insurance companies under the Insurance Business Act;
3. Securities companies under the Securities and Exchange
Act;
4. Mutual savings banks under the Mutual Savings Banks
Act;
5. Financial institutions equivalent to those under subparagraphs
1 through 4; and
6. Employee welfare fund under the Employee Welfare Fund
Act
(2) An association shall, when taking out a loan by
agreement under Article 32-4 (2) of the Act, comply with each
of the following
requirements:
- 11 -
1. Matters regarding a loan and its repayment between the
company and the association shall be agreed upon in
writing. In this case,
resolution of the company's Board of
Directors shall be required in advance:
2. The aggregate amount of loans shall not exceed the total
amount of wages (refer to wages subject to income taxes;
hereinafter
the same shall apply in this subparagraph) of
the association members based on the preceding fiscal year
and the loans of a given
fiscal year shall not exceed
10/100 of the total amount of wages of the association
members, based on the preceding fiscal year
of the
company, multiplied by the borrowing period (calculated
as the number of years and a period of less than one year
shall
be counted as one year) of the loan concerned as
described in subparagraph 3:
3. The borrowing period shall be between three years and
seven years and, in cases where new loans are made to
repay an existing
loan, the borrowing period shall not
exceed the remaining borrowing period of the existing
loan:
4. At least 10/100 of the remaining amount of the loan shall
be repaid annually at the end of the preceding fiscal year
throughout
the borrowing period.
Article 18 (Acquisition of Company's Own Stocks by Association)
When acquiring a company's own stocks on behalf of an
association
member, the association shall do so in a manner
aligned with the interests of all of its members.
Article 19 (Allocation of Company's Own Stocks by Association)
(1) When intending to allocate a company's own stocks
acquired pursuant
to Article 33 (2) of the Act, the association
shall comply with the following criteria:
1. The company's own stocks falling under any of the
following items shall be allocated to individual accounts
immediately upon
acquisition:
A. The company's own stocks acquired through contribution
by the company, shareholders, etc. pursuant to Article
33 (1) of the
Act or using the financial resources
described in subparagraphs 1, 2 and 5 of Article 35
- 12 -
(1) of the Act;
B. The company's own stocks acquired using loans
described in Article 35 (1) 3 of the Act and taken out
without signing an agreement as prescribed in Article
32-4 (2) of the Act;
or
C. The company's own stocks acquired by way of an
issue of bonus shares on the company's own stocks
allocated to individual accounts.
2. The company's own stocks acquired using loans described
in Article 35 (1) 3 of the Act and made without signing
an agreement
as prescribed in Article 32-4 (2) of the Act
and the company's own stocks acquired by way of an
issue of bonus shares on the company's
own stocks
concerned shall be held in the association account, and,
upon the repayment of the loan, the company's own stocks
equivalent
to the amount of the repaid loan shall be
immediately allocated to individual accounts; and
3. The company's own stocks acquired using the financial
resources set forth in Article 35 (1) 4 of the Act shall be
held in the
association account, and these stocks plus the
company's own stocks equivalent to the amount of the
first loan repayment since
they were held in the
association account shall be allocated to individual
accounts.
(2) In allocating the company's own stocks acquired using
the financial resources referred to in subparagraphs 1 and 5 of
Article
35 (1) of the Act, if an employee who was an association
member at the time of the formation of such financial resources,
retires
prior to the acquisition date of the company's own stocks
due to reasons prescribed by the Ordinance of the Ministry of
Labor,
such as attainment of the mandatory retirement age, the
company's own stocks shall also be allocated to the said
association member.
1. For a company's own stocks contributed pursuant to
Article 33 (1) of the Act or acquired using the financial
resources described
in subparagraphs 1 and 5 of Article 35
- 13 -
(1) of the Act, the period shall be determined after
consultation with the contributor but shall be between four
years and eight
years.
2. For a company's own stocks acquired using the financial
resources stated in Article 35 (1) 2 of the Act: one year
3. For a company's own stocks acquired using loans
described in Article 35 (1) 3 of the Act and made without
signing an agreement
as prescribed in Article 32-4 (2) of
the Act: one year
4. For a company's own stocks acquired using loans
described in Article 35 (1) 3 of the Act and made after
signing an agreement
as prescribed in Article 32-4 (2) of
the Act and allocated to individual accounts pursuant to
Article 19 (1) 2: one year
5. For a company's own stocks acquired using the financial
resources described in Article 35 (1) 4 of the Act and
allocated to individual
accounts pursuant to Article 19 (1)
3: one year
6. For a company's own stocks acquired by way of an issue
of bonus shares on the company's own stocks allocated to
individual accounts
: the remaining deposit period of the
company's own stocks on which bonus shares can be
issued : Provided that the stocks may not
be deposited if
the remaining deposit period from the date of issuing
bonus shares is less than three months.
(2) A company's own stocks acquired by exercising the
preemptive right to subscribe to new shares on the company's
own stocks deposited
pursuant to each subparagraph of
paragraph (1) using money contributed by the association
members may not be deposited.
(1) The "reasons prescribed by the Presidential Decree, such
as the dissolution of the employee stock ownership association or
the death of its member" in Article 34 (2) of the Act refer to
those falling under any of the following subparagraphs:
1. Dissolution of the association pursuant to Article 39 (1) of
the Act;
2. Death of an association member;
3. Retirement of an association member; or
4. Other circumstances, determined by the Ordinance of the
Ministry of Labor, in which the withdrawal of the
company's own stocks
is inevitable, such as the exercise
- 14 -
of the appraisal right of dissenting shareholders.
(2) A company's own stocks that can be withdrawn by an
association member pursuant
to subparagraphs 3 and 4 of
paragraph (1) shall be limited to stocks of which the remaining
deposit period is one year or less,
and the company's own stocks
of which the remaining deposit period exceeds one year shall be
retrieved by the association and allocated
to another association
member in accordance to the rules of the association: Provided
that in cases prescribed by the Ordinance
of the Ministry of
Labor, such as the attainment of the mandatory retirement age,
the company's own stocks of which the remaining
deposit period
is more than one year may be withdrawn by an association
member.
In using an association fund under Article 35 (2) of the Act,
the funds reserved by the end of the preceding fiscal year shall
be used for the acquisition of the company's own stocks, within
six months of the start of the current fiscal year (If used for
the repayment of loans and interests thereon, an amount equal
thereto shall be excluded): Provided that this shall not apply in
cases prescribed by the Ordinance of the Ministry of Labor,
such as cases where the company's own stocks are designated
as issues
for administration.
Article 23 (Establishment and Operation of Employee Stock Ownership
Administrative Committee)
(1) The Employee Stock Ownership Administrative Committee
(hereinafter referred to as the "Administrative Committee")
under Article
36 (2) of the Act shall consist of not more than
10 members including at least two members representing the
company and two members
representing the association.
Article 24 (Trustee and Provision of Deposited Company's Own
Stocks as Collateral)
(1) The "trustee prescribed by the Presidential Decree" in
Article 37 (1) of the Act refer to a company prescribed by the
Ordinance
of the Ministry of Labor from among the securities
companies established under Article 145 of the Securities and
Exchange Act.
(2) An association shall deposit the company's own stocks,
acquired by the association or its members, with a trustee
specified
in paragraph (1), not later than one month following
the base date of acquisition prescribed by the Ordinance of the
Ministry of
Labor.
(3) The company's own stocks deposited pursuant to Article
37 (2) of the Act may be offered as collateral in any of the
following
cases: Provided that this shall not apply to the
company's own stocks prescribed in subparagraphs 1 and 6 of
Article 20 (1) and
of which the remaining deposit period exceeds
one year. 1. If an association provides, as collateral, the company's own
stocks acquired using a loan to the lender of such a loan
and the
loan guarantor thereof pursuant to Article 32-4 (3)
of the Act;
2. If an association member takes out a loan, for the purpose
of purchasing the company's own stocks, using the
company's own stocks
held in the individual accounts as
collateral; or
3. If an association member takes out a loan for livelihood
security using the company's own stocks held in the
individual accounts
as collateral.
(4) The "financial institutions prescribed by the Presidential
Decree" in Article 37 (4) of the Act refer to the financial
institutions
specified in subparagraphs 1 through 5 of Article 17-3
(1). 1. Stocks of a listed corporation or KOSDAQ-listed
corporation: the closing market price on the previous day
- 16 -
of the withdrawal of the company's own stocks on the
securities market or KOSDAQ market (if no closing
market price exists, then
the base price on the day of the
withdrawal); and
2. Stocks of an unlisted corporation: the price agreed upon
by the interested parties of the sale in consideration of
the buyback
price as prescribed in Article 26 (1) (If no
buyback price exists, the price agreed upon by the
interested parties of the sale)
(2) If no agreement is reached on the purchase price with
respect to subparagraph 2 of paragraph (1), the association shall,
without
delay, return the stocks concerned to its members.
(1) If an unlisted corporation buys back its own stocks
pursuant to Article 38 (3) of the Act, necessary matters regarding
the
buyback of stocks, such as the stock price, timing of the
determination thereof and period of the application thereof shall
be
determined through consultation between the company and
the association.
(2) In determining the buyback price prescribed in paragraph
(1), the appraised price specified in the following subparagraphs
shall be taken into consideration: 1. The appraised price by a credit rating agency designated
by the Financial Services Commission from among outside
rating agencies
under Article 84-7 (2) 1 of the Enforcement
Decree of the Securities and Exchange Act;
2. The appraised price by an accounting corporation
established under Article 24 of the Certified Public
Accountant Act;
3. The appraised price by a trustee specified in Article 37 (1)
of the Act; and
4. The appraised price prescribed in Article 63 of the
Inheritance Tax and Gift Tax Act.
Article 27 (Report of Dissolution, etc. of Association)
(1) If an association is dissolved pursuant to Article 39 (1) of
the Act,
the liquidator shall submit a report specifying the reason
for such dissolution to the Minister of Labor , within three
weeks of
the date of dissolution.
- 17 -
(2) The "period prescribed by the Presidential Decree" in
Article 39 (1) 4 of the Act means the following periods: 1. If an association member holds an employee stock option:
the period during which such an employee stock option is
provided.
2. If an association of an affiliated company or its member
owns the affiliated company's own stocks: the period
during which the
company's own stocks are deposited
with a trustee prescribed in Article 24 (1).