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ENFORCEMENT DECREE OF THE ESTABLISHMENT, ETC. OF MICROFINANCE FOUNDATION ACT

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ENFORCEMENT DECREE OF THE ESTABLISHMENT, ETC. OF MICROFINANCE FOUNDATION ACT

Presidential Decree No. 20528, Jan. 8, 2008

Amended by Presidential Decree No. 20653, Feb. 29, 2008 Article 1 (Purpose)

The purpose of this Decree is to provide for the matters delegated by the Establishment, etc. of Microfinance Foundation Act and the matters necessary for the enforcement thereof.

Article 2 (Financial Institution)

The term "as prescribed by Presidential Decree" in subparagraph 1 (l) of Article 2 of the Establishment, etc. of Microfinance Foundation Act (hereinafter "Act") means forestry cooperatives and the National Forestry Cooperatives Federation under the Forestry Cooperatives Act Article 3 (Welfare Business, etc. for low-income groups) The term "as prescribed by Presidential Decree" in subparagraph 5 (d) of Article 2 of the Act means the businesses in the following subparagraphs:

1. Credit loan businesses to support educational expenses of low-income groups;

2. Credit loan businesses to support medical expenses of low-income groups; and

3. Other businesses for the stabilization of livelihood and promotion of the welfare of the working class, as prescribed by the articles of incorporation of the Microfinance Foundation (hereinafter "Foundation") Article 4 (Qualifications for Welfare Business Operators) The term "person who meets the qualifications prescribed by Presidential Decree" in subparagraph 6 of Article 2 of the Act means a person who meets the standards prescribed by the Foundation in consideration of financial capability, public trust worthiness, capability to perform a business necessary for the operation of welfare business for low-income groups, etc., which means a corporation or organization falling under any of the following subparagraphs:

1. Financial institutions under subparagraph 1 of Article 2 of the Act;

2. Public service corporations under the Act on the Establishment and ENFORCEMENT DECREE OF THE ESTABLISHMENT, ETC. OF

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Operation of Public-Service Corporations;

3. Corporation established under the Civil Act or Commercial Act, which encompasses welfare business for low-income groups, etc. as its purpose of business in its articles of incorporation; or

4. Other corporations or organizations corresponding to subparagraphs 1 through 3.

Article 5 (Submission of Business Plans, etc.)

(1) Pursuant to Article 20 of the Act, the foundation shall submit a business plan and budget by business year to the Financial Services Commission by not later than December 31 of each year and obtain approval thereof.

(2) When the Foundation submits the statement of accounts of each business year under Article 20, it shall submit it by attaching the papers in the following subparagraphs by not later than the end of February of the following business year:

1. Table of comparison between business plan and result of execution thereof of the business year;

2. Balance sheet and income statement of the business year;

3. Opinion of a certified public account or accounting corporation designated by the Financial Services Commission and opinion of the auditor of the Foundation; and

4. Other papers necessary to make clear the details of the settlement of accounts.

Article 6 (Extent of Data Submitted by Financial Institutions) The term "other data prescribed by Presidential Decree" in Article 21 (2) of the Act means the name of the financial institutions, address of financial institution, dormant account number or subscription certificate number, date of completion of negative prescription and other data decided by the Financial Services Commission. Article 7 (Applications for Support Money by Welfare Business Operators) When a welfare business operator applies for assistance money under Article 24 of the Act, he/she shall submit the papers in the following subparagraphs:

1. Status of operations of the welfare business operator concerned and status of assets holdings;

2. Business in need of assistance and plan to raise financial resources; and

3. Other papers necessary for the Foundation to decide as to whether to render assistance and to determine on the assistance money. Article 8 (Preparation and Submission of Reports on Business Results ENFORCEMENT DECREE OF THE ESTABLISHMENT, ETC. OF

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of Welfare Business Operators)

(1) Each welfare business operator shall prepare a report on business results in a method prescribed in paragraph (2) within 30 days from the time when the business is completed or when the business year has come to an end, and shall submit it to the Foundation. (2) The Foundation shall determine the method for preparing reports on business results and shall notify the welfare business operator by not later than 30 days before the deadline of submission.

Article 9 (Supervision, etc. of Assistance Money) (1) The chairman of the Foundation may confirm whether the assistance money delivered to the welfare business operator is being used for a business under subparagraph 2 of Article 7 and whether the welfare business operator has received the support money by fraudulent application through data, statement, etc. of the welfare business operator. (2) Other matters necessary for the supervision, return, etc. of support money shall be determined by the Foundation.

Article 10 (Inquiries on Data by Original Rightful Owners of Dormant Deposits)

Pursuant to Article 27 of the Act, the Foundation shall allow the original rightful owner of a dormant deposit to inquire into the data under Article 21 (2) of the Act by means of the information and communications network under Article 2 (1) 1 of the Article on Promotion of Information and Communications Network Utilization and Information Protection, etc. through the Foundation, financial institution, or a corporation, agency or organization falling under any of the following subparagraphs:

1. The Korea Federation of Banks established under Article 32 of the Civil Act with permission of the Financial Services Commission;

2. Association composed of life insurance companies from among insurance associations

established under Article 175 of the Insurance Business Act;

3. Association composed of non-life insurance companies from among insurance associations established under Article 175 of the Insurance Business Act;

4. The Korea Federation of Savings Banks under the Mutual Savings Banks Act;

5. The Investment Banks Association of Korea established under Article 32 of the Civil Act with permission of the Financial Services Commission; or

6. Other persons designated and announced by the Financial Services ENFORCEMENT DECREE OF THE ESTABLISHMENT, ETC. OF

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Commission from among the corporations, agencies and organizations related to the financial business.

Article 11 (Notification to Original Rightful Owners of Dormant Deposits) (1) The term "amount prescribed by Presidential Decree" in the body of Article 28 of the Act means 300,000 won.

(2) Where a financial institution notifies contribution to the original rightful owner of dormant deposit as prescribed in Article 28 of the Act, it shall do so in writing in the form of mail, fax or the information and communications network to the most recent contact address that he/she has reported: Provided, That in the event the notification returns or the financial institution is unable to confirm the contact address of the original rightful owner, it shall announce for seven days or more in public the fact of contribution on the website of the financial institution concerned, or a corporation, agency or organization falling under any of the subparagraphs of Article 10.

Article 12 (Procedure for Imposition and Collection of Fines for Negligence) (1) When the Financial Services Commission imposes fine for negligence under Article 34 (2) of the Act, it shall investigate and verify the violation concerned, and shall notify the person liable for disposition of fine for negligence by making clear the fact of violation, amount of fine for negligence, etc. in writing. (2) When the Financial Services Commission imposes fines for negligence as prescribed in paragraph (1), it shall provide the person liable for disposition of fine for negligence an opportunity to state his/her opinion orally or in writing (including by electronic document) after specifying a period of ten days or more. In such cases, if he/she does not state opinion by the specified date, it shall be deemed that there is no opinion.

(3) When the Financial Services Commission decides the amount of fine for negligence, it shall consider the motive for the violation concerned, result thereof, etc. (4) The procedures prescribed by the Acts and subordinate statutes concerning the management of the State fund shall apply mutatis mutandis to the procedures of collection of fines for negligence. ADDENDUM

This Decree shall enter into force on February 4, 2008. ENFORCEMENT DECREE OF THE ESTABLISHMENT, ETC. OF

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ADDENDA

Article 1 (Enforcement Date)

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

Article 2 Omitted.