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Selected Statutes of the Republic of Korea |
제22편 통화․국채․금융 한국산업은행법
Act No. 302, Dec. 30, 1953
Amended by Act No. 873, Dec. 27, 1961
Act No. 1557, Dec. 16, 1963
Act No. 2044, Sep. 14, 1968
Act No. 2120, Jul. 28, 1969
Act No. 2734, Dec. 26, 1974
Act No. 3020, Dec. 19, 1977
Act No. 3480, Dec. 31, 1981
Act No. 4052, Dec. 31, 1988
Act No. 4864, Jan. 5, 1995
Act No. 5371, Aug. 22, 1997
Act No. 5372, Aug. 28, 1997
Act No. 5403, Aug. 30, 1997
Act No. 5505, Jan. 13, 1998
Act No. 5982, May 24, 1999
Act No. 6679, Mar. 30, 2002
Act No. 7620, Jul. 29, 2005
Act No. 8863, Feb. 29, 2008
Act No. 9401, Jan. 30, 2009
Act No. 9703, May 21, 2009
CHAPTER Ⅰ GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to prescribe the matters necessary for the oper-
ation of the Korea Development Bank, including the scope of business there-
of, such as the supply of funds to promote the development of the national
economy, and the matters necessary for the implementation of privatiza-
tion of the Korea Development Bank.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
Article 2 (Nature, etc.)
(1) The Korea Development Bank shall be a juristic person. The Korea Development Bank shall be operated under this Act, orders issued here- under and the Korea Development Bank s articles of incorporation. <Amended
by Act No. 2044, Sep. 14, 1968>
(2) Deleted. <by Act No. 9703, May 21, 2009>
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Article 2-2 (Relation with other Acts)
(1) Unless otherwise provided for in this Act, the Banking Act shall apply to the Korea Development Bank: Provided, That Articles 8, 9, 23-2, 27 through 29, 32, 33, 35, Article 37 (1) and (2), subparagraphs 1 and 5 of
Article 38, Articles 40, 48, 53, 55, 56, 67, Article 68 (1) 5 and 6, and 68 (2)
shall not apply.
(2) Unless otherwise provided for in this Act, the provisons regarding a stock company out of the Commercial Act shall apply to the Korea Development
Bank.
[This Article Newly Inserted by Act No. 9703, May 21, 2009]
Article 3 (Establishment of Head Office, Branches, etc.)
(1) The Korea Development Bank shall have its head office in Seoul Special
Metropolitan City.
(2) The Korea Development Bank may have branches, agencies, or other business offices or offices in a place necessary for its operation
as prescribed
by the articles of incorporation. <Amended by Act No. 9703, May 21, 2009>
Article 4 (Capital)
The amount of capital of the Korea Development Bank shall be prescribed by the articles of incorporation within the scope of 20 trillion won, but shall be divided into shares.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
Article 5 (Articles of Incorporation)
(1) The following matters shall be provided for in the Korea Development
Bank s articles of incorporation: <Amended by Act No. 3020, Dec. 19, 1977; Act
No. 9703, May 21, 2009>
1. Purpose;
2. Name;
3. Matters concerning its head office, branches, agencies, and other business offices or offices;
4. Matters concerning capital and stock;
5. Matters concerning a general meeting of shareholders;
6. Matters concerning officers and the board of directors;
7. Matters concerning operations and the conduct thereof;
8. Matters concerning industrial finance bonds;
9. Matters concerning accounting;
10. Method of giving public notice.
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제22편 통화․국채․금융 한국산업은행법
(2) The Korea Development Bank shall, when it intends to revise its ar-
ticles of incorporation, obtain an authorization of the Financial Services
Commission through the resolution of the board of directors and a general meeting of shareholders. <Amended by Act No. 9703, May 21, 2009>
Article 6 (Registration)
(1) The Korea Development Bank shall be registered as prescribed by
Presidential Decree.
(2) The Korea Development Bank shall not assert its right to a third party until the matters required to be registered pursuant to
paragraph (1) are
registered.
Article 7 (Prohibition on Use of Similar Name)
No person, other than the Korea Development Bank, shall use the name the Korea Development Bank or any other similar name.
Article 8 (Dissolution)
(1) The dissolution of the Korea Development Bank shall be separately pro- vided for in the Act.
(2) Deleted. <by Act No. 9703, May 21, 2009>
CHAPTER Ⅱ EXECUTIVES AND BOARD OF DIRECTORS
Article 9 (Executives)
(1) The Korea Development Bank shall have a governor, a director and an auditor as its executives.
(2) There shall be one governor and one auditor, respectively.
(3) The number of directors shall be prescribed by the articles of incorporation and the majority of the total number of directors
shall be comprised of not
less than three outside directors.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
Article 10 (Duties of Executives)
(1) The governor shall represent the Korea Development Bank, and control the overall business thereof.
(2) Where the governor is unable to perform duties due to any inevitable reason, a director shall act for him/her as prescribed by
the articles of incorporation.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
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Article 11 (Board of Directors)
(1) The board of directors shall be comprised of the governer and directors.
<Amended by Act No. 9703, May 21, 2009>
(2) Deleted. <by Act No. 9703, May 21, 2009>
(3) The quorum for meetings of the board of directors shall be a majority of the members and resolutions shall be adopted by a majority
vote of the members present. <Amended by Act No. 9703, May 21, 2009>
(4) Deleted. <by Act No. 6679, Mar. 30, 2002>
(5) The auditor may attend and state his/her opinion before the board of directors: Provided,That he/she shall not have the right to vote. <Amended
by Act No. 2044, Sep. 14, 1968>
Article 12 (Appointment of Executives)
The governor, directors and the auditor shall be appointed at a general meeting of shareholders as prescribed by the articles of incorporation and the governor shall be appointed from among the directors.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
Article 13 (Terms of Office)
(1) The terms of office of executives shall be determined by the articles of incorporation, within the scope of three years.
(2) Where any vacancy occurs in the office of the governor, directors or the director, a new executive shall be appointed as prescribed
by the articles of incorporation and the term of office of such executive shall be the same as prescribed in paragraph (1).
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
Article 14 Deleted. <by Act No. 9703, May 21, 2009>
Article 15 (Appointment of Agent)
The governor may, in accordance with the Korea Development Bank s articles of incorporation, appoint an agent from among the executives or employees of the Korea Development Bank, who shall be delegated with full power to act for him/her in connection with the operations of the Korea Development Bank in all judicial and extrajudicial matters. <AmendedbyActNo.9703,May
21, 2009>
Article 16 Deleted. <by Act No. 9703, May 21, 2009>
Article 17 (Status of Executives)
Executives of the Korea Development Bank shall be regarded as public offi- cials for the purpose of applying the penal provisions of any Acts, including the Criminal Act. <Amended by Act No. 3020, Dec. 19, 1977>
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제22편 통화․국채․금융 한국산업은행법
CHAPTER Ⅲ BUSINESS OPERATIONS
SECTION 1 Business Operations
Article 18 (Business Operations)
The Korea Development Bank shall be engaged in business operations falling
under each of the following subparagraphs in order to fulfill the purposes
under Article 1:
1. To lend funds or discount bills;
2. To subscribe to, underwrite and invest in securities under Article 4 of
the Financial Investment Services and Capital Markets Act (hereinafter referred to as securities ): Provided,That underwriting of securities
can not exceed two times the aggregate of paid-in capital of the Korean
Development Bank and the reserved funds under Article 43 (1);
3. To guarantee the payment of debts or to accept them;
4. To raise funds in a manner falling under any of the following items in
order to perform business operations under subparagraphs 1 through 3:
(a) Revenue from deposits and installment deposits;
(b) Issuance of industrial finance bonds, other securities and debentures;
(c) Borrowings from the Government, the Bank of Korea or other financial institutions: Provided,That with respect to priority of the payment
of the debts, debts incurred from the borrowings from the Government
shall be subordinate to other debts to be paid by the Korea Devel-
opment Bank;
(d) Borrowings of foreign capital;
5. To deal in domestic currency and foreign currencies;
6. To provide services, such as review and planning, examination, analysis,
assessment, direction, consulting, etc. of economic or technologic feasi-
bility of a specific projects carried out upon entrustment from the
Government, public agencies or financial insititutions or any other busi-
ness operators;
7. Business incidental to business operations referred to in subparagraphs
1 through 6 after obtaining approval from the Financial Services
Commission;
8. In addition to business operations under subparagraphs 1 through 7,
business necessary for the fulfillment of the purposes under Article 1
after obtaining approval from the Financial Services Commission.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
- 5 -
Article 18-2 (Guarantee of Payment of Loans in Foreign Currency)
(1) The Government shall guarantee the payment of the principal and interest
of the loans in foreign currency (limited to bonds and borrowings with ma-
turity of one year or more; hereinafter the same shall apply) to be paid by
the Korea Development Bank at the time of the initial sale of shares of Korea
Development Bank Holdings under Article 50, owned by the Government
(including corporations in which the Government has invested more than
1/2 of its capital).
(2) The principal and interest guaranteed by the Government pursuant to
paragraph (1) shall be within the limit approved by the National Assembly.
(3) With respect to debts in foreign currency newly assumed by the Korea
Development Bank after obtaining approval from the Government in order
to re-pay the debts under paragraph (1) during the period for which the
Government (including corporations in which the Government has invested
more than 1/2 of its capital) exercises control (referring to holdings in excess
of 50/100 of the total number of outstanding voting stocks; hereafter ex-
cept for Chapter Ⅴ-2, the same shall apply) over Korea Development Bank
Holdings under Article 50, the Government or government-invested corpo-
rations (including corporations in which the Government has invested more
than 1/2 of its capital) may provide guarantee for the payment of principal
and interest of such debts, respectively, by setting the limit and scope.
(4) Where the Government assumes the debts guaranteed pursuant to para-
graph (1) or (3), the Government shall obtain approval, in advance, from
the National Assembly in accordance with Article 92 of the National Finance
Act.
(5) The guarantee under paragraph (3) shall satisfy the requirements pre-
scribed by Presidential Decree, such as cases where it is difficult to re-pay debts when the Government fails to guarantee the payment
thereof.
[This Article wholly Amended by Act No. 9203, May 21, 2009]
Article 19 (Long-term Loans of Special Government Funds)
Long-term loans of special Government funds with not less than one year s maturity shall be extended and administered exclusively by the Korea Development Bank.
Articles 20 through 22 Deleted. <by Act No. 9703, May 21, 2009>
Article 23 Deleted. <by Act No. 5372, Aug. 28, 1997>
Article 24 (Service Manuals)
The Korea Development Bank shall formulate service manuals containing
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제22편 통화․국채․금융 한국산업은행법
ways of performing services under Article 18, and obtain approval from
the Financial Services Commission. This shall also apply to changes in
service manuals. <AmendedbyActNo.5982,May24,1999;ActNo.8863,Feb.29,2008>
[This Article Wholly Amended by Act No. 5372, Aug. 28, 1997]
SECTION 2 Industrial Finance Bonds
Article 25 (Issuance of Industrial Finance Bonds)
(1) The Korea Development Bank may secure funds necessary for carrying out business under Article 18, such as loans, payment guarantees,
etc., in order to achieve the purposes under Article 1, by issuing industrial finance bonds. <Newly Inserted by Act No. 9703, May 21, 2009>
(2) The Korea Development Bank shall have the exclusive right to issue industrial finance bonds.
(3) The aggregate of the amount of industrial finance bonds issued and the outstanding balance of bonds and debts guaranteed
by the Korea
Development Bank or the outstanding balance of debts guaranteed or ac-
cepted shall not exceed 30 times the aggregate of paid-in capital of the
Korea Development Bank and the reserve funds under the provisions of
Article 43 (1): Provided,That the following subparagraphs shall be excluded
in the calculation of such limit: <Amended by Act No. 2734, Dec. 26, 1974; Act No.
3020,Dec.19,1977;ActNo.3480,Dec.31,1981;ActNo.4864,Jan.5,1995;ActNo.5403, Aug. 30, 1997; Act No. 5505, Jan. 13, 1998; Act No. 9703, May 21, 2009>
1. The outstanding balance of industrial finance bonds sold to the Govern-
ment;
2. The outstanding balance of industrial finance bonds on which the
Government has guaranteed the payment of principal and interest;
2-2. The outstanding balance of debts guaranteed or assumed by the
Korea Development Bank on which other financial institutions (in- cluding the Export-Import Bank of Korea and the Industrial
Bank of
Korea), the Credit Guarantee Fund, insurance companies and sim-
ilar organizations have guaranteed or insured the payment;
3. The outstanding balance of debts guaranteed or accepted by the Korea
Development Bank, on which the Government has guaranteed the
payment of principal and interest;
4. The outstanding balance of debts guaranteed or accepted by the Korea
Development Bank for the Government or local government.
- 7 -
(4) Deleted. <by Act No. 4864, Jan. 5, 1995>
Article 26 (Issuance of Bonds to Refund Accepted Bonds, Guarantee or
Discharge other Obligations)
(1) The Korea Development Bank may, when necessary to refund industrial finance bonds or to discharge obligations arising from the guaranty or acceptance of debts under subparagraph 3 of Article 18, issue industrial finance bonds temporarily over the limit prescribed in Article 25 (3). <Amended
by Act No. 2044, Sep. 14, 1968; Act No. 9703, May 21, 2009>
(2) When the Korea Development Bank issues industrial finance bonds
as provided for in paragraph (1), the Korea Development Bank shall, within one month after the issuance thereof, refund the old industrial
finance bonds in an amount equal to the aggregate par value of the industrial finance bonds issued thereby or discharge the obligations
in question.
Article 27 (Discount)
Industrial finance bonds may be issued at a discount or at a premium.
<Amended by Act No. 9703, May 21, 2009>
Article 28 (Guarantee of Payment by Government)
(1) The payment of principal and interest of industrial finance bonds may be guaranteed by the Government. <Amended by Act No. 2044, Sep. 14, 1968; Act No. 3480, Dec. 31, 1981>
(2) If the Government desires to guarantee the redemption of principal and interest of industrial finance bonds in accordance with
paragraph (1), it shall obtain prior approval of the National Assembly. <Newly Inserted by Act No. 4864, Jan. 5, 1995>
Article 29 (Extinctive Prescription of Bonds)
The right to the principal and interest of industrial finance bonds shall be extinguished by prescription unless exercised within five years and two years, respectively. <Amended by Act No. 2044, Sep. 14, 1968; Act No. 2734, Dec. 26, 1974>
Article 30 (Enforcement Decree)
Except as provided for in this Act, other necessary matters related to in- dustrial finance bonds shall be prescribed by Presidential Decree. <Amended
by Act No. 2044, Sep. 14, 1968>
SECTION 3 Administration of Loans
Articles 31 through 36 Deleted. <by Act No. 9703, May 21, 2009>
- 8 -
제22편 통화․국채․금융 한국산업은행법
CHAPTER Ⅳ ACCOUNTING
Article 37 (Fiscal Year, Budget and Settlement of Accounts)
(1) The fiscal year of the Korea Development Bank shall be from January
1 to December 31 every year. <Amended by Act No. 9703, May 21, 2009>
(2) The Korea Development Bank shall work out a budget of revenue and
expenditure for each fiscal year and report thereon to the Financial Services
Commission before the fiscal year begins. <Amended by Act No. 5372, Aug. 28,
1997;ActNo.5982,May24,1999;ActNo.8863,Feb.29,2008;ActNo.9703,May21,2009> (3) The Korea Development Bank shall submit the balance sheet as at the settlement date, the income statement of the relevant accounting
period, and consolidated financial statements prescribed by the Financial Services Commission to the Financial Services Commission
within three months after each fiscal year ends and then publicly announce them through the Internet website, etc.: Provided,That in cases of documents unlikely to be announced within three months due to inevitable reasons, the public announcement may be
delayed after obtaining approval from the Financial Services Commission. <Amended by Act No. 9703, May 21, 2009>
(4) through (6) Deleted. <by Act No. 9703, May 21, 2009>
[This Article Wholly Amended by Act No. 2734, Dec. 26, 1974]
Articles 38 through 42 Deleted. <by Act No. 2734, Dec. 26, 1974>
Article 43 (Disposal of Profit)
(1) The Korea Development Bank shall dispose of its net profit of set- tlement after appropriating it to depreciation of assets every fiscal year in accordance with each of the following subparagraphs: <AmendedbyAct
No. 7620, Jul. 29, 2005; Act No. 8863, Feb. 29, 2008; Act No. 9703, May 21, 2009>
1. Not less than 40/100 of net profit shall be reserved until net profit
of settlement reaches the gross amount of capital;
2. Remaining profit except for the reserve under subparagraph 1 shall be disposed of by a resolution of a general meeting of shareholders
through a resolution of the board of directors.
(2) The reserve fund prescribed in paragraph (1) may be capitalized after off- setting the losses of the Korea Development Bank
under Article 44.
<Amended by Act No. 2044, Sep. 14, 1968; Act No. 9703, May 21, 2009>
(3) Dividends under the provisions of paragraph (1) 2 may be made by
cash or in kind. Matters necessary for dividends in kind shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 7620, Jul. 29, 2005>
- 9 -
(4) Deleted. <by Act No. 9703, May 21, 2009>
Article 44 (Setoff of Losses)
(1) The annual net losses of the Korea Development Bank shall be offset each fiscal year by the reserve, and shall be compensated
by the Government if the reserve is insufficient. <Amended by Act No. 5372, Aug. 28, 1997>
(2) Notwithstanding the provisions of Article 55 of the State Properties Act, compensation by the Government in paragraph (1) may
be made by way of a transfer of general property under Article 6 (3) of the same Act. <Newly
Inserted by Act No. 5505, Jan. 13, 1998; Act No. 9401, Jan. 30, 2009>
(3) Where the Government intends to transfer the miscellaneous property
under paragraph (2), it shall obtain prior consent of the National Assembly
after deliberation by the State Council and approval by the President:
Provided,That where it deems urgently necessary for the stabilization of
the Korea Development Bank s management and financial order, the
Government may obtain expostfactoapproval of the National Assembly.
<Newly Inserted by Act No. 5505, Jan. 13, 1998>
Article 45 (Use of Surplus Funds)
The Korea Development Bank may administer surplus funds in carrying out
services in ways prescribed by the articles of association, to the extent that
the performance of services under Article 18 is not disturbed.
[This Article Wholly Amended by Act No. 5372, Aug. 28, 1997]
Article 46 Deleted. <by Act No. 9703, May 21, 2009>
CHAPTER Ⅴ SUPERVISION
Article 47 (Supervision)
The Financial Services Commission shall supervise the Korea Development Bank in accordance with this Act and may issue orders necessary therefor, and the Financial Services Commission shall supervise the Korea Devel- opment Bank to ensure the soundness of its management as prescribed by Presidential Decree and may issue orders necessary therefor.
[This Article Wholly Amended by Act No. 8863, Feb. 29, 2008]
Article 48 Deleted. <by Act No. 9703, May 21, 2009>
Article 49 (Submission of Reports and Inspection of Documents)
(1) If deemed necessary to excercise supervision under Article 47, the Financial Services Commission may request the Korea Development Bank to submit reports, or have public officials of the Financial Services Com-
- 10 -
제22편 통화․국채․금융 한국산업은행법
mission or employees of the Financial Supervisory Service inspect the state
of performance of services, books, documents, or other necessary items of the Korea Development Bank. <AmendedbyActNo.5372,Aug.28,1997;ActNo.5982,
May 24, 1999; Act No. 8863, Feb. 29, 2008>
(2) The Financial Services Commission may, if deemed necessary, delegate the power of examination under paragraph (1) to the Governor of the Fi- nancial Supervisory Service. <Amended by Act No. 2044, Sep. 14, 1968; Act No.
5372,Aug.28,1997;ActNo.5505,Jan.13,1998;ActNo.5982,May24,1999;ActNo.8863, Feb. 29, 2008>
(3) Individuals who conduct the examination of the Korea Development
Bank under paragraphs (1) and (2), shall carry with them identification cards certifying their status, and shall show the
cards to the parties
concerned. <Amended by Act No. 9703, May 21, 2009>
CHAPTER Ⅴ-2 KOREA DEVELOPMENT BANK HOLDINGS
Article 50 (Establishment)
(1) The Korea Development Bank shall establish Korea Development Bank
Holdings through spin-off under Article 530-2 of the Commercial Act
(hereinafter referred to as Korea Development Bank Holdings ) and the Korea Policy Banking Corporation under the Korea Policy Banking
Corpo- ration Act in order to enhance its capacity to provide financial services and
implement a smooth privatization.
(2) With respect to Korea Development Bank Holdings established in ac- cordance with paragraph (1), if the Government is a major
shareholder, the
standards for authorization under Article 4 of the Financial Holding Com- panies Act shall not apply and detailed standards for authorization
shall be prescribed by Presidential Decree.
(3) Korea Development Bank Holdings shall exercise control over the Korea Development Bank and subsidiaries under Article 2 (1) 2
of the Financial Holding Companies Act (hereinafter referred to as subsidiary of Korea
Development Bank Holdings ).
(4) Where Korea Development Bank Holdings is established pursuant to paragraph (1), approval for change in major shareholder shall
be deemed
to have been obtained from the Financial Services Commission pursuant
- 11 -
to the Acts and subordinate statutes governing the establishment of each
subsidiary.
[This Article Newly Inserted by Act No. 9703, May 21, 2009]
Article 50-2 (Nature)
Korea Development Bank Holdings shall, when transferring the Korea
Development Bank into a subsidiary of Korea Development Bank Holdings, be deemed a bank holding company under Article 2 (1) 5 of the
Financial
Holding Companies Act, but Articles 16 and 18 of the same Act shall not apply.
[This Article Newly Inserted by Act No. 9703, May 21, 2009]
Article 50-3 (Application of other Acts)
Unless specifically provided for in this Act, the Commercial Act and the
Financial Holding Companies Act shall apply to Korea Development Bank
Holdings.
[This Article Newly Inserted by Act No. 9703, May 21, 2009]
Article 50-4 (Special Cases concerning Lower-tier Subsidiaries)
The provisions related to a lower-tier subsidiaries under the Financial
Holding Companies Act (excluding Article 48 (5) of the same Act) and the Monopoly Regulation and Fair Trade Act shall not apply to
companies which do not carry on financial business among the companies under the control
of a subsidiary of Korea Development Bank Holdings, such as the Korea
Development Bank, etc., at the time when Korea Development Bank Holdings is established or the Korea Development Bank is transferred
into a subsidiary
of Korea Development Bank Holdings.
[This Article Newly Inserted by Act No. 9703, May 21, 2009]
Article 50-5 (Special Cases concerning Limit on Extension of Credit)
(1) Korea Development Bank Holdings and its subsidiaries, etc. under Article
4 (1) of the Financial Holding Companies Act (hereinafter referred to as<.. image removed ..>
Korea Development Bank Holdings, etc. ) shall not be governed by Article
45 (1) and (2) of the Financial Holding Companies Act in cases where the
Korea Development Bank to be transferred into a subsidiary extends credit to an electric source development business operator in accordance
with an execution plan for electric source development business under subparagraph
3 of Article 2 of the Electric Source Development Promotion Act.
(2) The methods of calculating equity capital of Korea Development Bank
Holdings, etc. shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9703, May 21, 2009]
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제22편 통화․국채․금융 한국산업은행법
Article 50-6 (Establishment and Functions of Committee to Monitor
Implementation of Privatization)
(1) The committee to monitor implementation of privatization (hereinafter
referred to as the Committee ) shall be established under Korea Devel-
opment Bank Holdings in order to implement a smooth privatization of the
Korea Development Bank.
(2) The Committee shall report, to the Financial Services Commission and
the competent Standing Committee of the National Assembly, a plan to sell
shares of Korea Development Bank Holdings and its subsidiaries and the
progress thereof, a plan to secure the basis for deposit service and the progress
thereof, and a plan to transfer business unable to be carried out by a financial
institution established in accordance with the Banking Act among the busi-
nesses of Korea Development Bank into other subsidiaries of Korea Devel-
opment Bank Holdings and the progress thereof before the beginning of each
fiscal year.
(3) The Committee shall be comprised of members falling under each of
the following subparagraphs including one chairperson:
1. Representative director of Korea Development Bank Holdings;
2. Governor of the Korea Development Bank;
3. President of the Korea Policy Banking Corporation;
4. Persons designated by the Minister of Strategy and Finance and the
Chairman of the Financial Services Commission, respectively, from
among relevant public officials who belong to the senior civil service;
5. Members of competent Standing Committees in the National Assembly,
who are specialized in finance;
6. Three persons commissioned by the Chairman of the Financial Services
Commission from among persons recommended by persons falling under
each of the following items, who have sufficient experience and knowledge
in finance, economy, law, and accounting:
(a) President of the Korea Federation of Banks established upon the
permission of the Financial Services Commission in accordance with
Article 32 of the Civil Act;
(b) President of the Korea Financial Investment Association under the
Financial Investment Services and Capital Markets Act;
(c) President of the Korea Institute of Certified Public Accountants.
(4) The chairperson shall be elected from among the members under para-
graph (3) 6.
- 13 -
(5) The chairperson shall represent the Committee and exercise overall con-
trol of the affairs of the Committee.
(6) The chairperson shall convene and preside over meetings of the
Committee.
(7) If the chairperson is unable to perform his/her duties due to any inevitable circumstances, a member designated, in advance, by
the Committee shall
act on behalf of the chairperson.
(8) Resolutions of a meeting of the Committee shall require the attendance of a majority of all the incumbent members and the consent
of a majority
of those present.
(9) Other matters necessary for the composition and operation of the Com- mittee shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9703, May 21, 2009]
CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS
Article 51 Deleted. <by Act No. 4864, Jan. 5, 1995>
Article 52 (Ownership, Administration or Utilization of Movable Estate and
Real Estate)
The Korea Development Bank shall not own, administer or operate any real estate or movable estate except for property acquired for the conduct of its business or taken over in the course of its credit collections or con- sidered necessary for the conduct of its operations.
Article 53 Deleted. <by Act No. 9703, May 21, 2009> Article 53-2 Deleted. <by Act No. 4864, Jan. 5, 1995> Article 53-3 Deleted. <by Act No. 5371, Aug. 22, 1997>
Article 54 (Penal Provision)
Any person who violates any order under Article 47 shall be punished by a fine not exceeding five million won.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
Article 54-2 (Special Cases concerning Investment under Special Act) (1) Where all or not less than one half of the capital of any juristic per- son established under a special Act is, under the provisions of such Act, to be subscribed to by the Government, or where at least one half of its issued stocks are to be held by the Government, the Korea Development Bank may, notwithstanding any provision of such Act, subscribe to the
- 14 -
제22편 통화․국채․금융 한국산업은행법
capital of such juristic person or hold its stocks in place of the Government.
(2) Juristic persons, whose capital has been subscribed to by the Korea
Development Bank or whose stocks are held by the Korea Development
Bank under paragraph (1) may, notwithstanding the provisions of the spe-
cial Act concerned, pay dividends to the Korea Development Bank in pro-
portion to the number of stocks (including subscription certificates) held
by the Korea Development Bank. <NewlyInsertedbyActNo.3020,Dec.19,1977>
[This Article Newly Inserted by Act No. 2044, Sep. 14, 1968]
Article 54-3 (Fines for Negligence)
(1) Any person who violates Article 7 shall be punished by a fine for negligence not exceeding five million won.
(2) Any person who fails to submit the report under Article 49 (1) or makes a false report, or who refuses, interferes with, or evades
an inspection under the same paragraph shall be punished by a fine for negligence not exceeding five million won.
(3) Fines for negligence under paragraphs (1) and (2) shall be levied and collected by the Financial Services Commission as prescribed
by Presidential Decree.
[This Article Wholly Amended by Act No. 9703, May 21, 2009]
ADDENDA
Article 55
(1) The Minister of Finance and Economy shall appoint the Korea Develop- ment Bank Organization Committee which shall handle the
affairs of the establishment of the Korea Development Bank.
(2) The Committee shall draft the articles of incorporation of the Korea Development Bank and obtain the authorization of the Minister
of Finance and Economy.
(3) The Committee shall request the Government, without delay, to pay in the capital of the Korea Development Bank, when the Minister
of Finance and Economy approves of the articles of incorporation of the Korea Develop- ment Bank under paragraph (2). <Amended by Act No. 2044, Sep. 14, 1968>
(4) The Korea Development Bank shall be legally established on the date on which the capital prescribed in paragraph (3), has been
paid in.
<Amended by Act No. 2044, Sep. 14, 1968>
(5) The Committee shall, without delay, transfer its business to the gover-
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nor of the Korea Development Bank when the Korea Development Bank
is established.
Article 56
The date on which the Korea Development Bank shall commence business
shall be prescribed by Presidential Decree.
Article 57
On the date on which the Korea Development Bank is established, the Korea
Development Bank shall, according to the list of property and prices as
agreed upon by the Minister of Finance and Economy, the president of
the Industrial Promotion Bank of Korea, and the governor of the Korea
Development Bank, succeed to such assets and liabilities of the Industrial
Promotion Bank of Korea as considered consistent with the purpose and
scope of the operations of the Korea Development Bank as provided by
this Act.
Article 58
The name of the Industrial Promotion Bank of Korea on the register books
and on other documents concerning such properties as succeeded to by
the Korea Development Bank from the Industrial Promotion Bank of Korea,
shall be regarded as having been changed into the name of the Korea
Development Bank.
Article 59
Other necessary matters concerning the liquidation of the Industrial
Promotion Bank of Korea not provided for in this Act shall be determined
by a separate Presidential Decree.
Article 60
Matters necessary for the enforcement of this Act shall be provided for by a
separate Presidential Decree.
Article 61
The Industrial Promotion Bank of Korea Act shall be repealed on the date
on which the Korea Development Bank is established.
Article 62
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 873, Dec. 27, 1961>
(1) This Act shall enter into force on the date of its promulgation.
(2) On the date on which the capital of the Korea Development Bank as pro-
vided for in Article 4 is paid in, the Korea Development Bank shall maintain
fifteen billion Hwan as a special reserve fund, the total amount of which
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제22편 통화․국채․금융 한국산업은행법
shall be supplied by the Government in accordance with a resolution of the
State Council.
(3) The special reserve fund as provided in the preceding paragraph shall be
appropriated exclusively to the offset of losses resulting from loans which
have been extended by the Korea Development Bank prior to the enforcement
of this Act, or resulting from the payment of the capital under Article 53-3 (4).
ADDENDUM <Act No. 1557, Dec. 16, 1963>
This Act shall enter into force on the enforcement day of the amended
Constitution which was promulgated on December 26, 1962.
ADDENDUM <Act No. 2044, Sep. 14, 1968>
This Act shall enter into force on the date of its promulgation: Provided,That the provisions relating to the auditor in Article 9 shall enter into force on the next day of the expiration date of the term of office of the auditor currently in office.
ADDENDUM <Act No. 2120, Jul. 28, 1969>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 2734, Dec. 26, 1974>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Capitalization of Government Loan Fund) A certain amount as pre-
scribed by the Presidential Decree out of the government loans to the Korea
Development Bank outstanding at the time when this Act enters into force
shall, irrespective of other Acts and subordinate statutes, be considered as
having been paid in to the Korea Development Bank by the Government
on the day as prescribed by the Presidential Decree.
(3) (Transitional Measures) The extinctive prescription of the right to
industrial finance bonds which have been issued on or prior to December 31,
1974 shall be governed by the previous provisions.
ADDENDUM <Act No. 3020, Dec. 19, 1977>
This Act shall enter into force on the date of its promulgation.
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ADDENDA <Act No. 3480, Dec. 31, 1981>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures on Special Reserve Funds) Among special reserve
funds provided for in paragraph (2) of the Addenda of the Act amending the Korea Development Bank Act (Act No. 873), the special reserve funds,
which still remains unemployed after being appropriated to the offset of
losses according to paragraph (3), shall be considered as subscribed to the
Korea Development Bank by the Government on the date of enforcement of this Act.
ADDENDUM <Act No. 4052, Dec. 31, 1988>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 4864, Jan. 5, 1995>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Examples of Application to Approval on Operational Program) The
amended provisions of Articles 20 (3) and 21 shall apply to the operational program from 1996 onwards.
(3) (Examples of Application to Issue of Industrial Finance Bonds) The
amended provisions of Article 25 (3) and (4) shall apply to the portion of the industrial finance bonds issued from 1996 onwards.
(4) (Transitional Measures concerning Penal Provisions) The application of
the penal provisions to any act committed before this Act enters into force, shall be subject to the previous provisions.
ADDENDA <Act No. 5372, Aug. 22 1997>
Article 1 (Enforcement Date)
This Act shall enter into force three months from the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 5372, Aug. 28, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force three months from the date of its prom-
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제22편 통화․국채․금융 한국산업은행법
ulgation.
Article 2 (Applicability to Budgets)
The amended provisions of Article 37 (2) shall apply to budgets from 1998
onwards.
Article 3 (Transitional Measures concerning Officers, etc.)
(1) The term of office of the chairman of the board of directors and directors
appointed by the Framework Act on the Management of Government-
Invested Institutions at the time this Act enters into force shall be deemed
to have expired at the same time when this Act enters into force.
(2) The governor, executive officer, and auditor of the Korea Development
Bank appointed by the Framework Act on the Management of Govern- ment-Invested Institutions at the time this Act enters into force
shall be deemed to have been appointed as governor, vice-governor, director or auditor by this Act respectively, as prescribed by
articles of association. In such cases, the term of office shall be governed by the Framework Act on the Management of Government-Invested
Institutions, and commences from the date on which appointment has been made.
ADDENDA <Act No. 5403, Aug. 30, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5505, Jan. 13, 1998>
(1) (Enforcement Date) This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
(2) (Transitional Measures concerning Dispositions) At the time this Act enters into force, authorization or other actions taken by
administrative agencies, or various reports or other actions submitted to administrative agencies under the previous provisions,
shall be deemed to be actions taken by or submitted to administrative agencies under this Act.
(3) and (4) Omitted.
(5) (Transitional Measures concerning Funds Granted by Government) The Amendment to subparagraph 7 (b) of Article 18 of the Korea Development Bank Act shall apply to funds the Government has granted to the Korea Development Bank at the time this Act enters into force.
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제22편 통화․국채․금융 한국산업은행법
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso
Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 6679, Mar. 30, 2002>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 7620, Jul. 29. 2005>
This Act shall enter into force on January 1, 2006.
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.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 9703, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on June 1, 2009: Provided,That Article 11
(2) of the Addenda shall enter into force at the time when the Korea Policy
Financing Corporation is incorporated under the Korea Policy Financing
Corporation Act.
Article 2 (Preparation for Establishment of Korea Development Bank
Holdings)
The Korea Development Bank shall initiate a procedure for establishing
Korea Development Bank Holdings without delay after this Act enters into
force.
Article 3 (Repeal of this Act upon Disposal of Stocks Held)
(1) Where the Government (including corporations in which the Government
- 20 -
has invested more than 1/2 of their capital) ceases to exercise control over
Korea Development Bank Holdings as a result of disposing of stocks of Korea
Development Bank Holdings, the Korea Development Bank and Korea
Development Bank Holdings shall not, notwithstanding the provisions of
other Articles in this Act, carry on new business which is prohibited for a
financial institution established after obtaining authorization under the
Banking Act and the Financial Holding Companies Act, respectively.
(2) The Government shall take measures to repeal this Act within one month
from the date under paragraph (1).
Article 4 (Special Cases concerning Initial Sale of Korea Development Bank
Holdings Shares)
The initial sale of Korea Development Bank Holdings shares under the
amended provisions of Article 18-2 (1) shall be made within five years from
the date when this Act enters into force.
Article 5 (Special Cases concerning Appoint or Dismissal of Executives of
Korea Development Bank Holdings)
(1) Notwithstanding the amended provisions of Article 50-3, executives of
Korea Development Bank Holdings shall be appointed or dismissed in a man-
ner falling under each of the following subparagraphs during the period for
which the Government (including corporations in which the Government
has invested more than 1/2 of their capital; hereafter the same shall apply
in this Article) exercises control over Korea Development Bank Holdings:
1. The representative director shall be appointed by the President upon
the recommendation of the Chairman of the Financial Services Com-
mission;
2. Executives, other than the representative director, shall be appointed
by the Financial Services Commission upon the recommendation of the
representative director.
(2) The President shall dismiss the representative director upon the recom-
mendation of the chairman of the Financial Services Commission during the
period for which the Government exercises control over Korea Development
Bank Holdings when the representative director falls under any of the follow-
ing subparagraphs:
1. Where the representative director violates this Act, any order issued in
accordance with this Act. or the articles of incorporation;
2. Where the representative director is found guilty of a criminal offense;
3. Where the representative director is declared bankruptcy;
4. Where the representative director is unable to perform his/her duties
due to mental or physical disability;
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제22편 통화․국채․금융 한국산업은행법
5. Where it is deemed that the management performance is significantly poor.
(3) The Financial Services Commission shall dismiss any executive under paragraph (1) 2 upon the recommendation of the representative
director when he/she falls under any of the subparagraphs of paragraph (2) during the period for which the Government exercises control
over Korea Development Bank Holdings.
Article 6 (Special Cases concerning Liabilities for Debts in Foreign
Currency)
The Korea Development Bank shall, when it newly assumes liabilities to
re-pay debts in foreign currency until the time of the initial sale of Korea
Development Bank Holdings shares from the date this Act enters into force,
consult with the Minister of Strategy and Finance and the Financial Services
Commission as prescribed by Presidential Decree.
Article 7 (Transitional Measures concerning Executives)
(1) The governor of the Korea Development Bank appointed pursuant to
the previous provisions at the time this Act enters into force shall be deemed
to be appointed as the governor of the Korea development Bank in accordance
with this Act, the vice governor shall be deemed a director, and the auditor
shall be deemed an auditor, but the terms of office shall be calculated retro-
spectively from the date when they are appointed in accordance with the
previous provisions.
(2) The amended provisions of Article 9 (3) with respect to the number of
outside directors shall not apply until the terms of directors under para-
graph (1) are terminated.
(3) When the Korea Development Bank appoints the first outside director
in accordance with this Act, the latter part of Article 22 (3) of the Banking
Act shall not apply.
Article 8 (Transitional Measures concerning Penal Provisions)
When any penalty is imposed against activities conducted before this Act
enters into force, the previous provisions shall apply.
Article 9 (Special Cases concerning Application of Act on Structural
Improvement of Financial Industry)
(1) Where Korea Development Bank Holdings transfers the Korea Devel- opment Bank into a subsidiary of Korea Development Bank Holdings,
Article
24 of the Act on the Structural Improvement of the Financial Industry shall not apply to stocks held by the Korea Development Bank
at the time of transfer.
(2) Notwithstanding paragraph (1), Korea Development Bank Holdings shall
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meet the requirements for approval of holding stocks under Article 24 of
the Act on the Structural Improvement of the Financial Industry within five years from the date when the Korea Development Bank is
transferred into
a subsidiary of Korea Development Bank Holdings: Provided,That the same
shall not apply to cases of holding stocks of small and medium enterprises under the Framework Act on Small and Medium Enterprises.
Article 10 (Transitional Measures concerning First Amendment of Articles of Incorporation)
Notwithstanding the amended provisions of Article 5 (2), the first amend-
ment of the articles of incorporation of the Korea Development Bank in ac- cordance with the implementation of this Act shall be governed
by the pre-
vious provisions.
Article 11 Omitted.
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