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Act on raising lump-sum saving of farming and fishing households

ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

Act No. 3797, Dec. 23, 1985

Amended by Act No. 4806, Dec. 22, 1994

Act No. 5454, Dec. 13, 1997

Act No. 5505, Jan. 13, 1998

Act No. 6736, Dec. 5, 2002

Act No. 6838, Dec. 30, 2002

Act No. 7311, Dec. 31, 2004

Act No. 8050, Oct. 4, 2006

Act No. 8863, Feb. 29, 2008

Article 1 (Purpose)

The purpose of this Act is to create stable basis of living for farmers and fishermen by supporting them accumulate assets and encourage them to save, and to induce them to contribute to the development of agricultural, fishery and livestock industries by inducing their earnings to savings to increase the supply of agricultural, fishery and livestock funds.

Article 2 (Definitions)

(1) The term “savings institutions” in this Act means those prescribed by the following subparagraphs: <Amended by Act No. 7311, Dec. 31, 2004>
1. The local agricultural cooperatives established under the Agricultural
Cooperatives Act;
2. The fisheries cooperatives by region and the fisheries cooperatives by business types established under the Fisheries Cooperatives Act; and
3. The livestock industry cooperatives by region and the livestock industry cooperatives by business types established under the Livestock Industry Cooperatives Act.
(2) The term “farmers and fishermen” in this Act means persons prescribed
by Presidential Decree from among those set out in the following
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ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

subparagraphs: <Amended by Act No. 7311, Dec. 31, 2004>
1. The farmers as prescribed by Article 10 (2) of the Agricultural
Cooperatives Act;
2. The fishermen as prescribed by subparagraph 3 of Article 2 of the
Fisheries Cooperatives Act; and
3. The stockbreeders as prescribed by Article 2 (1) 2 of the Livestock
Industry Cooperatives Act.
(3) The term “lump-sum saving of farming and fishing households” in this Act means the savings of the farmers and fishermen for the purposes of receiving the principal and interest of the savings, and the savings bounty in cash after saving for a given period.

Article 3 (Preferential Support)

(1) The Government, the Bank of Korea and the savings institutions shall preferentially take the necessary measures for support of the stable livelihood of farmers and fishermen, encourage them to save and amass assets, and then take action to implement such measures.
(2) Savings institutions shall faithfully perform the procedures and method of savings under this Act and the orders under this Act, and provide other necessary conveniencies for farmers and fishermen saving up for the raising lump-sum saving of farming and fishing households (hereinafter referred to as “raising lump-sum saving”) under the provisions of this Act from the conclusion of the savings contract until receipt of the principal and interest of the savings and the savings bounty after the expiration of the savings contract period.

Article 4 (Contract for Raising Lump-Sum Savings)

(1) Farmers and fishermen who intend to participate in lump-sum saving shall enter into the contract with the savings institutions.
(2) The saving amount of the farmers and fishermen, period of savings, method of savings and other matters necessary for the savings contract shall be prescribed by Presidential Decree.

Article 5 (Effect of Savings Contracts)

(1) In cases where farmers and fishermen have not fallen under the farmers and fishermen as prescribed by Article 2 (2) after entering into a contract for raising lump-sum saving, the farmers and fishermen shall be deemed as the farmers and fishermen under this Act until the period of the savings
contract expirer.
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ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

(2) No saving institutions shall change the payment rate of the interest for the savings amount nor other conditions for the raising lump-sum saving to be more disadvantageous than those as determined at the time of such savings contract until the expiration of the period of the savings contract.

Article 6 (Savings Bounties)

The Government shall, when farmers and fishermen have saved for a given period under the savings contract as prescribed by Article 4, pay a savings bounty as prescribed by Presidential Decree other than the payment of interest, etc. for the amount of savings by the savings institutions. In such cases, the Government shall not change the payment rate or payment method of the savings bounty to be more disadvantageous than those as determined at the time of the savings contract until the expiration of the period of such saving contract.

Article 7 (Savings Bounty Fund)

(1) The Government shall establish the bounty fund (hereinafter referred to as the “Fund”) for the raising lump-sum saving of farming and fishing households to pay the savings bounty as prescribed by Article 6.
(2) The fund shall be created by the financial resources of the following subparagraphs:
1. Contributions of the Government;
2. Contributions of the Bank of Korea; and
3. Operating profits of the fund.
(3) The Government shall contribute more than one half of the amount required for the savings bounty each year, and cover all amounts of deficit incurred from the operation of the fund in the following year.
(4) The Bank of Korea shall contribute the necessary amount of money according to the plan for fund raising and operation as prescribed by Article
9 from its surplus and reserve each year with the resolution of the Monetary Policy Committee until the fiscal year when the payment of the savings bounty under this Act has expired. <Amended by Act No. 5505, Jan. 13, 1998>

Article 8 (Operation and Management of Fund)

(1) The Fund shall be operated and managed by the Financial Services
Commission. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>
(2) The Financial Services Commission may entrust the Governor of the Bank of Korea with the affairs concerning the operation and management of the Fund. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>
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ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

(3) Accounts of the Fund shall be settled under the principle of the business accounting.
(4) The fund shall be operated by the methods prescribed by the following subparagraphs: <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>
1. Deleted. <by Act No. 6736, Dec. 5, 2002>
2. Purchasing of national bonds, local government bonds, monetary stabilization bonds of the Bank of Korea and other securities as designated by the Financial Services Commission;
3. Temporary deposits or short-term loans to financial institutions; and
4. Deposits in the Bank of Korea.

Article 9 (Plan for Fund Raising and Operation )

The Financial Services Commission shall draw up a plan for raising funds and operation every fiscal year and obtain approval of the President through the deliberation of the State Council. <Amended by Act No.5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>

Article 10 (Accounting Institution of Fund)

(1) The Financial Services Commission shall appoint the Fund revenue collecting officer, the Fund financial officer, the Fund expenditure officer and the Fund accounting public official out of the public officials under its control to perform the affairs concerning the revenue and expenditure of the Fund. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 6838, Dec. 30, 2002; Act No.

8863, Feb. 29, 2008>

(2) The Financial Services Commission may, when it has entrusted the Governor of the Bank of Korea with the affairs concerning the operation and management of the Fund under the provisions of Article 8 (2), appoint the deputy governor in charge of the fund revenue and the deputy governor in charge of the act of grounds for Fund expenditure out of the deputy governors of the Bank of Korea, and appoint a staff-member for the Fund expenditure and a staff-member for the Fund accounting among the staff. In such cases, the deputy governor in charge of the Fund revenue shall perform the duties of the fund revenue collecting officer, the deputy governor in charge of the act of grounds for the Fund expenditure the duties of the Fund financial officer, the staff-member for the Fund expenditure the duties of the Fund expenditure officer, the staff-member for the Fund accounting the duties of the Fund accounting public officer respectively.

<Amended by Act No. 6838, Dec. 30, 2002; Act no. 8863, Feb. 29, 2008>

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ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

(3) Deleted. <by Act No. 6838, Dec. 30, 2002>

Article 11 (Temporary Loans)

(1) The Financial Services Commission may, when deemed necessary for operation of the Fund, temporarily obtain funds on loan from the Bank of Korea at the liability of the Fund. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>
(2) The temporary loan shall be redeemed within one year from the date
of loan.

Article 12 (Approval of Settlement of Accounts)

(1) The Financial Services Commission shall draw up a report on the settlement of accounts of the Fund each fiscal year and obtain the approval of the President through the deliberation of the State Council by March
31 of the next fiscal year. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb.

29, 2008>

(2) The provisions of Articles 68 (1) and 73 of the State Finance Act shall apply to the operational plan under the provisions of Article 9 and the approval of the settlement of accounts under the provisions of paragraph (1). <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8050, Oct. 4, 2006>

Article 13 (Coverage of Loss to Savings Institutions)

Each year the Fund may cover the losses of the savings institutions incurred by not modifying the payment rate of interest and other conditions under the provisions of Article 5 (2).

Article 14 (Fund Operation of Savings Institutions)

(1) The Financial Services Commission shall draff a plan for creation and operation of the raising lump-sum saving Fund each fiscal year classified by the national federation of the savings institutions as prescribed by the subparagraphs of Article 2 (1). <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>
(2) The savings institutions shall operate the Funds created by the raising
lump-sum saving as the agricultural, fisheries and livestock Funds.

Article 15 (Classified Accounting, etc. of Savings Fund)

(1) Savings institutions shall establish separate accounts for the receipt of deposits of the raising lump-sum saving funds.
(2) The savings institutions shall accept the deposit of the raising lump-sum saving funds and operate them under their own computations.

Article 16 Deleted. <by Act No. 4806, Dec. 22, 1994>

Article 17 (Supervision, etc.)

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ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

(1) The Financial Services Commission may issue orders to the savings institutions necessary for supervision with respect to the affairs under the provisions of this Act. <Amended by Act No. 5505, Jan. 13, 1998; Act No.8863, Feb.

28, 2008>

(2) The Financial Services Commission may, when necessary, issue orders to the savings institutions to report concerning the affairs under the provisions of this Act or cause a public official under its control to inspect such affairs. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>
(3) The Financial Services Commission may entrust the Governor of the Financial Supervisory Service with the authority under the provisions of paragraphs (1) and (2). <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb.

29, 2008>

Article 18 (Relationship with other Acts and Subordinate Statutes)

When any provisions in the Bank of Korea Act, the Banking Act and other Acts and subordinate statutes are in conflict with the provisions of this Act, the provisions of this Act shall govern.

Article 19 (Enforcement Decree)

The matters necessary for the enforcement of this Act shall be prescribed by Presidential Decree.

ADDENDA <Act No. 3797, Dec. 23, 1985>

(1) (Enforcement Date) This Act shall enter into force on January 1, 1986.
(2) (Transitional Measure) Raising lump-sum saving for farming and fishing households for which the farmers and fishermen have entered into contract with the local agricultural cooperative, the fisheries cooperatives by region and by the types of business or the corporate fishing village fraternities prior to the enforcement of this Act shall be deemed the raising lump-sum saving under this Act.
(3) (Transitional Measures) As the period of the savings contract of the lump sum-raising savings of farming and fishing households for which the local agricultural cooperatives, the fisheries cooperatives by region and by business types or the corporate fishing village fraternities had entered into the contract with the farmers and fishermen prior this Act entering into force, expired prior to this Act entering into force, when they paid the savings bounty, the amount of money which the local agricultural cooperatives, the
fisheries cooperatives by region and by business types or the corporate fishing
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ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

village fraternities paid with their own funds due to insufficiency of the savings bounty, shall be paid from the Fund.

ADDENDA <Act No. 4806, Dec. 22, 1994>

Article 1 (Enforcement Date)

(1) This Act shall enter into force on January 1, 1995: Provided, That
... <Omitted> ... the amended provisions of the Act on Lump Sum-Raising
Savings of Farming and Fishing Households under the provisions of Article
18 (3) of Addenda shall enter into force on January 1, 2004. (2) Omitted

Articles 2 through 17 Omitted.

ADDENDUM <Act No. 5454, Dec. 13, 1997>

This Act shall enter into force on January 1, 1998. (Proviso Omitted.)

ADDENDA <Act No. 5505, Jan. 13, 1998>

(1) (Enforcement Date) This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
(2) through (5) Omitted.

ADDENDA <Act No. 6736, Dec. 5, 2002>

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 through 4 Omitted.

ADDENDA <Act No. 6838, Dec. 30, 2002>

Article 1 (Enforcement Date)

This Act shall enter into force on January 1, 2003.

Articles 2 through 7 Omitted.

ADDENDA <Act No. 7311, Dec. 31, 2004>

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.
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ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS

(Latter Sentence Omitted.)

Articles 2 through 16 Omitted.

ADDENDA <Act No. 8050, Oct. 4, 2006>

Article 1 (Enforcement Date)

This Act shall enter into force on January 1, 2007. (Proviso Omitted.)

Articles 2 through 12 Omitted.

ADDENDA <Act No. 8863, Feb. 29, 2008>

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 through 5 Omitted.

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