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Selected Statutes of the Republic of Korea |
제22편 통화․국채․금융 신용정보의 이용 및 보호에 관한 법률
USE AND PROTECTION OF CREDIT INFORMATION ACT
Wholly Amended by Act No. 9617, Apr. 1, 2009
CHAPTER Ⅰ GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to contribute to the establishment of sound order in credit by soundly promoting credit information
business and
pursuing the efficient utilization and systematic management of credit information, and by adequately protecting privacy, etc.
from the misuse
and abuse of credit information.
Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term credit information means information prescribed by Presi- dential Decree, which is necessary to determine the
credit rating,
credit transaction capacity, etc. of a counterparty in commercial trans- actions, including financial transactions;
2. The term personal credit information<.. image removed ..>means credit information
prescribed by Presidential Decree, which is necessary to determine the credit rating, credit transaction capacity, etc. of an individual;
3. The term credit information subject means a person identified by
processed credit information, who is a subject of such credit in- formation;
4. The term credit information business means doing all or some of
activities set forth in any subparagraph of Article 4 (1) as a business;
5. The term credit information company means a person who has been licensed by the Financial Services Commission pursuant to the
provi-
sions of Article 4 to engage in credit information business;
6. The term credit information collection agency means a person regis- tered with the Financial Services Commission pursuant to
the provi-
sions of Article 25 (1), who centrally manages and utilizes credit in-
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USE AND PROTECTION OF CREDIT INFORMATION ACT
formation;
7. The term credit information provider/user means a person pre- scribed by Presidential Decree, who provides any third party
with
credit information obtained or produced in relation to his/her own business for purposes of commercial transactions, such as financial
transactions with customers, or who has been continuously supplied
with credit information from any third party to use such information for his/her own business, or person in a similar position;
8. The term credit inquiry service means collecting and processing
credit information, producing credit information that represents credit worthiness, credit transaction capacity, etc. of the credit
information
subject, and furnishing such credit information to clients upon their
request;
9. The term credit investigation service<.. image removed ..>means investigating credit information to furnish it to clients upon their request;
10. The term claims collection service means recovering claims on behalf of and with the authorization of creditors, through asset
investigation
into persons who fail to repay claims within the agreed deadline,
dunning, or recovery of payments from debtors;
11. The term claims which are the object of claims collection, means monetary claims that accrue from commercial practices
under the
Commercial Act; civil claims prescribed by Presidential Decree, the title of which has been acknowledged by judgments, etc.; monetary
claims arising from loan and guarantee, and other credit facilities
and insurance businesses for union members and members of coopera- tives, mutual aid associations, savings and finance companies,
and
their national federations and associations established under special
Acts; and any other claims, the collection of which is allowed to be entrusted to a credit information company pursuant to other
Acts;
12. The term credit rating service means assessing the probability of
repayment of the principal and interest in connection with financial instruments, credit facilities, etc. and the credit worthiness
of com-
panies, legal entities, indirect investment vehicles, etc. for the pur-
pose of protecting investors;
13. The term processing means any act falling under any of the following items:
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제22편 통화․국채․금융 신용정보의 이용 및 보호에 관한 법률
(a) Entering, saving, processing, editing, searching, deleting or print-
ing any credit information using computers;
(b) Providing credit information to a third party via delivery, postal
service, electronic transmission, etc.;
(c) Other acts similar to those set forth in items (a) and (b).
Article 3 (Promotion of Credit Information Business)
(1) The Financial Services Commission may, if deemed necessary to im- prove credit information companies<.. image removed ..>capability to provide credit in- formation and to facilitate utilization of credit information, develop plans
in relation to promotion of credit information business.
(2) The Financial Services Commission may, if deemed necessary to smoothly implement the plans under paragraph (1), request cooperation
of the head of a related administrative agency, who, in turn, shall comply
with such request in the absence of any justifiable ground to the contrary.
CHAPTER Ⅱ LICENSING, ETC. OF CREDIT INFORMATION BUSINESS
Article 4 (Type and Licensing of Credit Information Business)
(1) The type and operations of a credit information business shall be as follows and, in such cases, any other service incidental
thereto referred to in the following subparagraphs shall be determined by Presidential
Decree:
1. Credit inquiry business: Credit inquiry services and any other service incidental thereto;
2. Credit investigation business: Credit investigation services and any
other service incidental thereto;
3. Claims collection business: Claims collection services any other service incidental thereto;
4. Credit rating business: Credit rating services and other service incidental thereto.
(2) Any person who intends to engage in credit information business
shall obtain a license from the Financial Services Commission in accord- ance with the type of services under subparagraphs of paragraph
(1).
(3) Any person who intends to obtain a license under paragraph (2) shall
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USE AND PROTECTION OF CREDIT INFORMATION ACT
file an application with the Financial Services Commission, as prescribed
by Presidential Decree.
(4) The Financial Services Commission may attach conditions to a license
under paragraph (2).
(5) Any matter concerning an application for a license, including methods to fill out a license application form in relation to
a license pursuant
to paragraph (2) and the procedure and standard for license review, and any other matter required shall be determined by Ordinance
of the
Prime Minister.
Article 5 (Qualified Licensee by Type of Credit Information Business) (1) A person who may be licensed to engage in credit inquiry business, credit investigation business and claims collection business, shall be limited to any person falling under any of the following subparagraphs:
1. A corporation, at least 50/100 of the capital of which is invested by financial institutions, etc. prescribed by Presidential
Decree;
2. The Korea Credit Guarantee Fund established pursuant to the Credit
Guarantee Fund Act;
3. The Korea Technology Credit Guarantee Fund established pursuant to the Korea Technology Credit Guarantee Fund Act;
4. A credit guarantee foundation established pursuant to the Regional
Credit Guarantee Foundation Act;
5. The Korea Export Insurance Corporation established pursuant the
Export Insurance Act;
6. A corporation, at least 50/100 of the capital of which is invested by a person who is licensed to engage in all or some
of the operations
referred to in Article 4 (1) 1 through 3: Provided, That cases where an investor engages in the same kind of operation with the corpo-
ration invested, shall be excluded.
(2) Any person who falls under any of the following subparagraphs and any person who does not constitute a juristic person shall
be prohibited
from being licensed to render credit rating services:
1. A corporation, at least 10/100 of the capital of which is invested by a company which belongs to an enterprise group subject to
the limi-
tations on mutual investment, as prescribed by Article 9 (1) of the
Monopoly Regulation and Fair Trade Act (including an affiliated per- son under Article 7 (1) of the same Act; hereinafter referred
to as
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제22편 통화․국채․금융 신용정보의 이용 및 보호에 관한 법률
company affiliated with an enterprise group subject to limitations on
mutual investment );
2. A corporation, at least 10/100 of the capital of which is invested by
financial institutions, etc. prescribed by Presidential Decree (including an affiliated person under Article 7 (1) of the Monopoly
Regulation
and Fair Trade Act; hereinafter referred to as investment financial
institutions, etc. );
3. A corporation, the largest investor in which is a corporation falling under any of the following items:
(a) A corporation, at least 10/100 of the capital of which is invested by a company affiliated with an enterprise group subject
to
limitations on mutual investment;
(b) A corporation, at least 10/100 of the capital of which is invested by investment financial institutions, etc.
Article 6 (Licensing Requirements)
(1) Any person who intends to obtain a license for credit information business under Article 4 (2), shall satisfy requirements referred
to in each of the following subparagraphs:
1. He/she shall be equipped with sufficient human resources and phys-
ical facilities, including computer equipment, to carry out credit in- formation business;
2. He/she shall have reasonable and sound business plans;
3. Major investors prescribed by Presidential Decree shall have sufficient investment capacity, viable financial standing and social
credibility;
4. He/she shall have a sufficient level of expertise to perform credit
information business.
(2) Any person who intends to be licensed to engage in credit information business shall possess capital or basic property classified
in the following
subparagraphs:
1. Five billion won or more, where he/she intends to carry out credit inquiry business and credit rating business, separately
or jointly;
2. Not more than five billion won, but not less than the amount de- termined by Presidential Decree, where he/she intends to carry
out
credit investigation business and claims collection business, sepa-
rately or jointly.
(3) Any matter necessary for the detailed licensing requirements referred
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USE AND PROTECTION OF CREDIT INFORMATION ACT
to in paragraph (1) shall be determined by Presidential Decree.
(4) A credit information company shall continue to satisfy the require-
ments set forth in paragraph (1) 1 while it conducts credit information
business.
Article 7 (Public Notification on License, etc.)
The Financial Services Commission shall, when it grants a license in
accordance with the provisions of Article 4 (2) or cancels a license or
authorization in accordance with the provisions of Article 14 (1), publicly
announce such action in the Official Gazette without delay and make
it known to the public by means of Internet web page, etc.
Article 8 (Matters to Declare and Report)
Where a credit information company intends to modify any matter pre-
scribed by Presidential Decree, which has been licensed under Article
4 (2), it shall make a prior declaration to the Financial Services
Commission: Provided, That if it intends to modify insignificant matters
prescribed by Presidential Decree, it shall report any reason for mod-
ification to the Financial Services Commission within seven days from
the date when such reason occurs.
Article 9 (Approval for Change in Controlling Shareholder, etc.)
(1) Any person who intends to acquire shares of a credit information
company (including equity interest; hereafter in this Article the same
shall apply) to become a controlling shareholder prescribed by Presidential
Decree shall satisfy the requirements determined by Presidential Decree
to promote sound management under Article 6 (1) 3 and obtain prior
approval from the Financial Services Commission.
(2) The Financial Services Commission may order a credit information
company to dispose of the shares obtained without approval under para-
graph (1) within a specified period of not more than six months.
(3) Any person who obtains shares without approval under paragraph
(1) must not exercise voting rights for such shares.
(4) Any detailed matter necessary for the approval under paragraph (1)
and the disposition order under paragraph (2) shall be determined by
Presidential Decree.
Article 10 (Authorization of Transfer, Acquisition by Transfer, etc. of Credit
Information Business)
(1) Where a credit information company intends to wholly or partially
transfer, take over, or divide its business, or merge with another juristic
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제22편 통화․국채․금융 신용정보의 이용 및 보호에 관한 법률
person (including division and merger under Article 530-2 of the Com-
mercial Act; hereinafter the same shall apply), it shall obtain author-
ization from the Financial Services Commission, as prescribed by Presi-
dential Decree.
(2) Where a credit information company transfers or divides its business
or merges it with another juristic person under authorization in accordance with paragraph (1), a transferee, a juristic person to
be established after
division, a juristic person which survives the merger (except for cases where a credit information company carries out a statutory
merger with
another juristic person which is not a credit information company), or
a juristic person newly formed through the merger shall succeed to the status of the transferrer or the juristic person before merger
or division
as a credit information company. In such cases, a license granted to
the existing credit information company prior to such event shall become null and void (in cases of the partial transfer or division
under para-
graph (1), it applies only to the transferred or divided business).
(3) With regard to any transferee, any juristic person which survives merger, and any juristic person newly established in accordance
with
division or merger, as prescribed by paragraphs (1) and (2), the provisions
of Articles 5, 6, 22 (1), 27 (1) through (7), and 28 shall apply mutatis
mutandis.
(4) Where a credit information company intends to temporarily suspend
or close all or some of its business activities, it shall file a prior report to the Financial Services Commission, as prescribed
by Ordinance of
the Prime Minister.
Article 11 (Concurrent Operation of Business Activities)
A credit information company may concurrently operate the business activities that have been reported to and authorized by
the Financial
Services Commission as well as their related business activities, as
prescribed by Ordinance of the Prime Minister, except for any of the following subparagraphs. In such cases, any business
activity, which
requires authorization, licensing, registration, approval, etc. of an
administrative agency in accordance with any applicable individual Act, shall obtain prior authorization, license, registration, approval,
etc. in
accordance to such individual Act:
1. Business activities to provide an individual with another person s
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USE AND PROTECTION OF CREDIT INFORMATION ACT
credit information and the processed credit information thereof;
2. Business activities to act as a proxy in issuing a liability certificate in relation to another company s claims (excluding cases
prescribed
by Presidential Decree);
3. Business activities deemed out of the scope of operations carried out by a credit information company; for instance, agency
business ac-
tivities, including a lawsuit for another person s exercise of rights, such as purchase of bad debts and collection of claims,
or a credit
rating agency s business activities to assess an individual s credit
rating;
4. Other business activities prescribed by Presidential Decree, which may definitely exert a harmful influence on a credit information
subject
or society.
Article 12 (Prohibition of Use of Similar Title)
No person, other than a credit information company, licensed under this Act, shall use such titles as credit information, credit investigation, credit rating or any title similar thereto for his/her trade name.
Article 13 (Prohibition of Concurrent Office Holding by Executives)
No full-time executive of a credit information company may undertake the position of managing director of another profit-making juristic
person
without approval of the Financial Services Commission.
Article 14 (Cancellation of License, etc. and Suspension of Business) (1) The Financial Services Commission may cancel any license or au- thorization of a credit information company if it falls under
any of the following subparagraphs: Provided, That if a ground prescribed by Presidential Decree exists, despite the fact that a credit information company falls
under any of the following subparagraphs, the Financial Services Commission may issue, prior to such cancellation, an order to correct
within a specified period of not more than six months:
1. If it has been licensed under Article 4 (2) or authorized under Article
10 (1) by fraudulent or other wrongful means;
2. If it has violated investment requirements of financial institutions, etc. under Article 5 (1) 1: Provided, That cases where the shares of
a credit information company are listed in the stock market in accordance with Article 9 (13) of the Financial Investment
Services and Capital Markets Act shall be excluded;
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제22편 통화․국채․금융 신용정보의 이용 및 보호에 관한 법률
3. If it has violated Article 5 (2) (applicable only to credit rating business);
4. If the equity capital (referring to the sum of total assets less total liabilities on the balance sheet as of the end of the latest
business
year; hereinafter the same shall apply) of a credit information com- pany [excluding cases where three business years (five years
if credit
inquiry business or credit rating business is included) have not
elapsed since the credit information company was granted a license]
falls short of the capital or basic asset requirements referred to in
Article 6 (2);
5. If a credit information company, which has violated an order of practice suspension or committed any act that constitutes
the grounds for
practice suspension, had been imposed the disposition of practice
suspension within one year from the date when such grounds for practice suspension occurred;
6. If it has violated any of subparagraphs 1 through 4 of Article 40
(excluding credit rating business);
7. If it has violated subparagraph 1, 4, or 6 of Article 40 (applicable only to credit rating business);
8. If it has carried out claims collection activities, in violation of any subparagraph of Article 9 of the Fair Debt Collection Practices Act
(applicable only to claims collection business);
9. If it has violated the terms or conditions of a license or authorization;
10. If it has failed to perform the licensed operations for one or more years consecutively without justifiable grounds;
11. If it has carried out claims collection activities, in violation of Article
41 (1) (applicable only to claims collection business).
(2) The Financial Services Commission may issue an order to wholly
or partially suspend business within a specified period of not more than six months, if a credit information company falls under any
of the following
subparagraphs:
1. If it has violated Article 6 (4);
2. If it has violated Article 11;
3. If it has violated the restrictions concerning collection, investigation,
etc. under Article 16 (excluding credit rating business);
4. If it has violated Articles 22 (1), 27 (1) and 28;
5. If it has violated subparagraph 5 of Article 40;
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USE AND PROTECTION OF CREDIT INFORMATION ACT
6. If it has carried out claims collection activities, in violation of sub-
paragraphs 2 and 5 of Article 12 of the Fair Debt Collection Practices
Act (applicable only to claims collection business);
7. If a case constitutes grounds for the disposition set forth in attached
Table;
8. Any other case where it has violated other Acts and subordinate
statutes or articles of incorporation, or its management is inviable so that it severely damages or threatens to damage public interests.
CHAPTER Ⅲ COLLECTION, INVESTIGATION AND PROCESSING OF CREDIT INFORMATION
Article 15 (Principles of Collection and Investigation)
In collecting and investigating credit information, a credit information com- pany, credit information collection agency and credit
information pro-
vider/user (hereinafter referred to as credit information company, etc. )
shall clarify the purposes of such collection and investigation within the scope of operations determined by this Act or the articles
of incorporation
and employ reasonable and fair means to the extent required to serve
such purposes.
Article 16 (Restrictions on Collection, Investigation and Processing) (1) No credit information company, etc. shall collect and investigate the information falling under any of the following subparagraphs:
1. Information pertaining to national security and classified information;
2. A company s trade secret or initiative research and development information;
3. An individual s political belief, religious faith, or other personal information irrelevant to credit information;
4. Personal credit information not ascertained;
5. Any information prohibited from being collected in accordance with other Acts;
6. Other information prescribed by Presidential Decree.
(2) A credit information company, etc. which intends to collect and inves- tigate the information pertaining to an individual s disease
or provide
it to a third party, shall obtain prior approval from such individual under
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제22편 통화․국채․금융 신용정보의 이용 및 보호에 관한 법률
Article 32 (1), and such information shall be used only for purposes
prescribed by Presidential Decree.
Article 17 (Entrustment of Collection, Investigation and Processing) (1) A credit information company, etc. may entrust, within the scope of its operations, collection and investigation of credit information to another credit information company, etc. with the consent of its clients. (2) A credit information company, etc. may entrust the processing of the collected credit information to another person who satisfies given requirements prescribed by Presidential Decree, including a given amount of capital, and any matter concerning the processing of entrusted operations shall be subject to Articles 19 through 21, 40, 43 and 45 (including penal and fines provisions in relation to such Articles). (3) A credit information company, etc. prescribed by Presidential Decree,
who intends to entrust the processing of credit information under para- graph (2), shall notify the Financial Services Commission of the scope of the provided credit information, etc., as prescribed by Presidential Decree.
CHAPTER Ⅳ DISTRIBUTION, USE AND MANAGEMENT OF CREDIT INFORMATION
Article 18 (Keeping Credit Information Accurate and Up-to-Date)
(1) A credit information company, etc. shall register, modify, and manage credit information, as prescribed by Presidential Decree,
so as to keep credit information accurate and up-to-date.
(2) A credit information company, etc. shall delete out-dated credit in- formation that may disadvantage a credit information subject,
as pre- scribed by Presidential Decree.
Article 19 (Protection of Security of Credit Information Computer System) (1) A credit information company, etc. shall formulate technological, physical and administrative security measures, as prescribed by Presi- dential Decree, with respect to the unlawful access by a third party to the credit information computer system (including the common computer network for credit information under Article 25 (6); hereinafter the same shall apply) and alteration, damage and destruction or other danger in
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USE AND PROTECTION OF CREDIT INFORMATION ACT
relation to the information entered.
(2) Where a credit information provider/user exchanges credit information with another credit information provider/user or any credit
bureau subject
to this Act, such credit information provider/user shall enter into an agreement containing measures to manage security
of credit information,
as prescribed and publicly notified by the Financial Services Commission.
Article 20 (Clarification of Accountability of Credit Information Manage- ment and Archiving of Business Records)
(1) A credit information company, etc. shall establish internal management
regulations with regard to collection, processing, use, etc. of credit
information, as determined by the Financial Services Commission.
(2) A credit information company, etc. shall archive the records concerning the following matters for three years:
1. Addresses and names of the clients or of institutions that such information is provided for or exchanged with;
2. Details of the operations requested and date of request;
3. Processing results of the operations requested or details of the credit information provided and date of provision;
4. Other matters determined by Presidential Decree.
(3) A credit information company, a credit information collection agency, and a credit information provider/user determined by Presidential
Decree
shall appoint one or more credit information administrators/protectors
who undertake the tasks prescribed by Presidential Decree, including protection of credit information, handling of complaints
raised by the
credit information subject in connection with credit information.
(4) The qualifications for and other matters necessary to appoint a credit information administrator/protector pursuant to paragraph
(3) shall be
determined by Presidential Decree.
(5) Where a credit information manager appointed in accordance with
Article 48-2 (4) of the Financial Holding Companies Act meets the qual- ifications set forth in paragraph (4), such credit information
admin-
istrator shall be deemed a credit information administrator/protector appointed under paragraph (3).
Article 21 (Disposition of Archived Information upon Closure of Business) Where a credit information company or credit information collection agency intends to close its business, it shall dispose of or destroy information in
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제22편 통화․국채․금융 신용정보의 이용 및 보호에 관한 법률
its possession, as determined and publicly notified by the Financial Services
Commission.
CHAPTER Ⅴ CREDIT INFORMATION BUSINESS
SECTION 1 Credit Inquiry Business, etc.
Article 22 (Persons Engaged in Credit Inquiry Business)
(1) No credit bureau (referring to a person licensed for credit inquiry business; hereinafter the same shall apply) shall appoint
or hire any person falling under any of the following subparagraphs as executives:
1. A minor;
2. A quasi-incompetent person or incompetent person;
3. A person who has yet to be rehabilitated after having been declared bankrupt;
4. A person in whose case three years have not elapsed since the
completion of, or exemption from, a sentence of imprisonment without labor, or heavier punishment, as so declared by a court (including
cases where such execution is deemed to have been completed);
5. A person who is under a suspended sentence of imprisonment without labor or a heavier punishment as declared by a court;
6. A person who has been dismissed or discharged from office under
this Act or other Acts and subordinate statutes, and for whom five years have not passed after such incident;
7. A person who had worked as an executive or employee of a juristic
person or company, license, authorization, etc. of which was revoked under this Act or other Acts and subordinate statutes, and for
whom
five years have not passed after such revocation (applicable only to
any person prescribed by Presidential Decree, who is directly respon- sible for the grounds for such revocation or any person in the
position
corresponding thereto).
(2) Where executives or employees who engage in credit inquiry business, intend to collect credit information, they shall carry a
certificate indicating
their engagement in credit inquiry business to present it to persons
concerned.
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USE AND PROTECTION OF CREDIT INFORMATION ACT
Article 23 (Requests, etc. for Perusal and Provision of Credit Information of Public Institutions)
(1) A credit bureau or credit information collection agency may request
the State, local governments, or public organizations prescribed by
Presidential Decree (hereinafter referred to public institution ) to provide for or offer public reading of credit information in
their possession that may be disclosed under related Acts and subordinate statutes. In such
cases, the public institution requested shall comply with such requests
unless any special reason exists to the contrary.
(2) Where a credit bureau or credit information collection agency requests the head of a public institution to provide credit information
prescribed
by Presidential Decree, which is necessary to determine credit worthiness, credit transaction capacity, etc. of the credit information
subject, the
head of a public institution requested may, notwithstanding the Acts
set forth in the following subparagraphs, provide credit information for the requesting credit bureau or credit information collection
agency. The
standards, procedures, etc. for the head of public institutions to provide
information for a credit bureau or credit information collection agency shall be determined by Presidential Decree:
1. Official Information Disclosure Act;
2. Act on the Protection of Personal Information Maintained by Public
Institutions;
3. National Health Insurance Act;
4. National Pension Act;
5. Korea Electric Power Corporation Act;
6. Resident Registration Act.
(3) A credit bureau or credit information collection agency may supply credit information provided by public institutions in
accordance with
paragraph (2) to any credit information provider/user prescribed by
Presidential Decree.
(4) In supplying personal credit information to a credit information pro- vider/user under paragraphs (2) and (3), a credit bureau
or credit in-
formation collection agency shall verify whether the credit information provider/user has obtained consent from the individual concerned
in rela-
tion to the provision and use of credit information thereof in accordance
with Article 32 (3).
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(5) No credit information provider/user supplied with credit information
under paragraph (3) shall provide it to any other person.
(6) Any person who requests perusal or provision of credit information
under paragraph (1) shall pay fees or commissions for perusal in accord- ance with related Acts and subordinate statutes.
(7) Where the head of a public institution requests, in writing, the provi-
sion of credit information to use it for business prescribed by related
Acts and subordinate statutes, the credit information company, etc. re- quested may provide such credit information.
Article 24 (Use of Computer Data of Resident Registration)
(1) Where a case falls under any of the following subparagraphs, any credit information collection agency and any credit information
pro-
vider/user prescribed by Presidential Decree may request the Minister
of Public Administration and Security to provide resident registration data in the computer system under Article 30 (1) of
the Resident
Registration Act. In such cases, the Minister of Public Administration
and Security shall comply with such request unless any special reason exists to the contrary:
1. Where the payment of deposits, insurance benefits, etc., the extinction
prescription of which is completed in accordance with other Acts, including Article 64 of the Commercial Act, shall be notified to the
original right holder thereof;
2. Where matters that affect the rights and obligations of a counterparty, including the occurrence of events resulting in change
to contracts,
such as maturity, lapse, termination, etc. of financial transaction
contracts, shall be notified.
(2) Any request for resident registration data in the computer system pursuant to paragraph (1) shall undergo the review by the
Chairman of the Financial Services Commission.
(3) Where a request has undergone review by the Chairman of the Financial Services Commission under paragraph (2), it shall be deemed
to have undergone the review by the heads of relevant central admin-
istrative institutions under Article 30 (1) of the Resident Registration Act. Any matter pertaining to processing procedures, usage
fees, commis- sions, etc. shall be determined by the Resident Registration Act.
Article 25 (Credit Information Collection Agency)
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(1) A person who intends to centrally collect and store credit information
to manage it in a systematic and comprehensive manner and exchange and utilize credit information between credit information companies,
etc.
(hereinafter referred to as central management and utilization ), shall be registered with the Financial Services Commission
as a credit in-
formation collection agency.
(2) A credit information collection agency under paragraph (1) may be registered as classified in the following subparagraphs:
1. Centralized credit information collection agency: A credit information
collection agency that carries out the central management and utilization of credit information obtained from all financial
institutions
prescribed by Presidential Decree;
2. Individual credit information collection agency: A credit information collection agency that carries out the central management
and uti-
lization of credit information obtained from the same type of financial
institutions among the financial institutions under subparagraph 1 or that carries out the central management and utilization of credit
information in accordance with agreements, etc. made by associations,
etc. established by the same type of business owners other than finan- cial institutions.
(3) A person who intends to be registered as a credit information collec-
tion agency pursuant to paragraph (1), shall satisfy the requirements of the following subparagraphs:
1. Making profits shall not become the purpose of doing business;
2. The facility, equipment and human resources prescribed by Presidential
Decree shall be furnished.
(4) Any matter necessary for registration and revocation under para-
graphs (1) and (2), the scope of credit information subject to central management and utilization, and the persons to exchange
credit in-
formation with shall be determined by Presidential Decree.
(5) A centralized credit information collection agency subject to para- graph (2) 1, for the purpose of ensuring the accuracy and
timeliness of
credit information centrally collected, may investigate as to whether a
financial institution duly performs its obligations to provide credit in- formation, as prescribed by the Credit Information
Council under Article
26.
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(6) A credit information collection agency may establish a common com-
puter network for credit information (hereinafter referred to as Common
Computer Network ), as prescribed by Presidential Decree, and any person who participates in the Common Computer Network shall provide
cooper- ation required to maintain and manage it. In such cases, a credit in-
formation collection agency shall be a telecommunication business owner under Article 2 (1) 1 of the Telecommunications Business
Act.
Article 26 (Credit Information Council)
(1) A credit information council shall be established under a centralized credit information collection agency under Article 25 (2)
1 so as to discuss and determine any of the following subparagraphs:
1. Matters concerning the allocation of ordinary expenditure for central management and utilization of credit information, investment
funds for new projects, etc.;
2. Matters concerning investigation on a financial institution s per- formance of its obligations for the provision of credit
information under Article 25 (2) 1 and imposition of sanctions in connection
therewith, as prescribed by Presidential Decree;
3. Matters concerning preventive measures against the disclosure or use of credit information for a non-business purpose;
4. Other matters necessary for the central management and utilization of credit information.
(2) Matters concerning the formation and operation of a Credit Information
Council under paragraph (1) shall be determined by the head of a central- ized credit information collection agency, as prescribed
by Presidential Decree.
(3) Where a Credit Information Council discusses and determines any matter in connection with paragraph (1) 2 through 4, it shall
report such fact to the Financial Services Commission.
SECTION 2 Credit Investigation Business and
Claims Collection Business
Article 27 (Persons who are Engaged in Business, Delegated Claims
Collectors, etc.)
(1) A credit investigation company (referring to any person licensed to
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engage in credit investigation business; hereinafter the same shall apply)
or a claims collection agency (referring to any person licensed to engage in claims collection business; hereinafter the same shall
apply) shall not
appoint or hire any person who falls under any of the following sub- paragraphs, as its executive and employee, and nor it
shall delegate, or
in a manner corresponding to delegation, the claims collection service to
such person:
1. A minor: Provided, That cases where he/she is appointed or hired for
operations determined and publicly notified by the Financial Services
Commission shall be excluded;
2. A quasi-incompetent person or incompetent person;
3. A person who has yet to be rehabilitated after having been declared
bankrupt;
4. A person in whose case three years have not elapsed since the com- pletion of, or exemption from, a sentence of imprisonment without
labor, or greater punishment, as so declared by a court (including cases where such execution is deemed to have been completed);
5. A person who is subject to a suspended sentence of imprisonment
without labor or a heavier punishment as declared by a court;
6. A person who has been dismissed or discharged from office under this Act or other Acts and subordinate statutes, and for whom
five
years have not passed after such incident;
7. A person who had worked as an executive or employee of a juristic person or company, license, authorization, etc. of which was
revoked
under this Act or other Acts and subordinate statutes, and for whom five years have not passed after such revocation (applicable only
to
any person prescribed by Presidential Decree, who is directly
responsible for the grounds for such revocation or any person in the position corresponding thereto);
8. A person whose registration as a delegated claims collector under
paragraph (2) 2 has been revoked, and for whom five years have not passed after such revocation.
(2) A claims collection agency shall perform its claims collection business
through a person falling under any of the following subparagraphs:
1. Any executive or employee of a claims collection agency;
2. A person who has been delegated, or in a manner corresponding to
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delegation, to render claims collection services by a claims collection
agency (hereinafter referred to as delegated claims collector ).
(3) A claims collection agency shall register a person who intends to
become its delegated claims collector, with the Financial Services Com- mission.
(4) No delegated claims collector may render claims collection services
for a claims collection agency where he/she is not employed.
(5) A claims collection agency may not collect claims that are not the object of collection and shall not render claims collection
services through
a delegated claims collector falling under any of the following subpar- agraphs:
1. A delegated claims collector who is not registered under paragraph
(3);
2. A delegated claims collector who has been registered with another claims collection agency;
3. A delegated claims collector who is suspended from his/her business under paragraph (7).
(6) The Financial Services Commission may cancel the registration of
delegated claims collectors, if they:
1. Have been registered under paragraph (3) in a fraudulent or any other unlawful means;
2. Have violated an order for practice suspension or performed acts amounting to practice suspension under paragraph (7) after
having
received the disposition of practice suspension within one year from
the date when such violation occurred;
3. Have breached any provision of subparagraphs 1 through 4 of Article
40;
4. Have performed claims collection activities in violation of any sub- paragraph of Article 9 of the Fair Debt Collection Practices Act;
5. Have violated any term or condition of registration;
6. Have failed to perform the registered business continuously for one year or more without justifiable grounds.
(7) The Financial Services Commission may order the practice suspension,
in whole or in part, within a specified period of not more than six months, if delegated claims collectors:
1. Have violated paragraph (4);
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2. Have violated the restrictions on collection, investigation, etc. under
Article 16;
3. Have performed the acts set forth in subparagraph 5 of Article 40;
4. Have violated subparagraphs 2 and 5 of Article 12 of the Fair Debt
Collection Practices Act;
5. Have violated other Acts and subordinate statutes or articles of association of their claims collection agency to severely
harm or be likely to harm public interests.
(8) Where executives and employees who engage in credit investigation business or claims collection business or delegated claims collectors
intend to render credit information collection and investigation services or claims collection services, they shall carry a certificate
demonstrating their engagement in credit investigation business or claims collection business and present it to persons concerned.
(9) Qualifications and registration procedures for delegated claims collec- tors shall be determined by Presidential Decree.
(10) Where a person who intends to become a delegated claims collector, has applied for registration, he/she shall pay fees, as
prescribed by Ordinance of the Prime Minister.
SECTION 3 Credit Rating Business
Article 28 (Persons Engaged in Credit Rating Business)
No credit rating agency (referring to a person licensed to perform credit rating business; hereinafter the same shall apply) shall
appoint or hire any person who falls under any of the following subparagraphs as its executive:
1. A minor;
2. A quasi-incompetent person or incompetent person;
3. A persons who has yet to be rehabilitated after having been declared bankrupt;
4. A person in whose case three years have not elapsed since the com- pletion of, or exemption from, a sentence of imprisonment without
labor, or heavier punishment, as so declared by a court (including cases where such execution is deemed to have been completed);
5. A person who is subject to a suspended sentence of imprisonment without labor or a heavier punishment as declared by a
court;
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USE AND PROTECTION OF CREDIT INFORMATION ACT
6. A person who has been dismissed or discharged from office under
this Act or other Acts and subordinate statutes, and for whom five years have not passed after such incident;
7. A person who had worked as an executive or employee of a juristic person or company, license, authorization, etc. of which was
revoked
under this Act or other Acts and subordinate statutes, and for whom
five years have not passed after such revocation (applicable only to any person prescribed by Presidential Decree, who is directly
respon-
sible for the grounds for such revocation or any person in a position
corresponding thereto).
Article 29 (Matters to be Observed by Credit Rating Agency)
(1) In assessing credit worthiness of a client, a credit rating agency shall consider, in a comprehensive manner, both its current
status, including its financial standing and business performance, and its outlook, including business risk, management risk,
and financial risk.
(2) No credit rating agency may perform credit rating activities on any person in a special relationship prescribed by Presidential
Decree, including a person having relationship of investment exceeding a given ratio.
(3) Where a credit rating agency performs credit rating activities on any person having investment relationship with the relevant
credit rating agency, who is not prescribed by Presidential Decree under paragraph (2), it shall specify, in a credit report, the
matters in connection with the investment relationship.
(4) Where a credit rating agency provides a credit report for a client, it shall append documents containing the matters determined
and publicly notified by the Financial Services Commission as deemed necessary to identify the rating capabilities of the credit
rating agency, including a credit rating performance report (referring to a document describing the principal and interest redemption
rate of securities for each credit rating that the credit rating agency has assessed) (hereinafter referred to as credit rating
performance report, etc. ).
(5) A credit rating agency shall submit to the Financial Services Com- mission documents containing the matters determined by the
Financial Services Commission as deemed necessary to identify the rating capa-
bilities of the credit rating agency, including a credit rating performance
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report, etc., and furnish such documents in the Korea Exchange and
the Korea Financial Investment Association under the Financial Invest- ment Services and Capital Markets Act to make it available
to the public.
(6) In the credit rating process, no credit rating agency shall force or solicit a client to purchase or use goods or services
of its own or its
affiliated companies.
(7) A credit rating agency shall prescribe the appropriate standards and procedures that shall be observed by its executives
and employees
(hereinafter referred to as internal control standards ) and verify
compliance therewith.
(8) The internal control standards shall contain the following matters:
1. Matters concerning the separation of rating organization and sales
organization;
2. Matters concerning the prohibition of conflict of interests;
3. Matters concerning the prohibition of unfair practices;
4. Matters concerning the introduction of credit rating criteria appropriate for the nature of rated entities;
5. Other necessary matters in relation to internal control standards, as
prescribed by Presidential Decree.
(9) No person who is or was an executive or employee of a credit rating agency shall disclose any client s trade secrets obtained
during the course
of business: Provided, That in cases falling under any of the following
subparagraphs, the same shall not apply:
1. If a trade secret is provided and used for such purposes as agreed by the client;
2. If a trade secret is provided subject to court order for submission thereof or a warrant issued by a judicial officer;
3. If a trade secret is provided pursuant to other Acts.
Article 30 (Limits on Voting Rights)
(1) In the event that a company affiliated with an enterprise group subject to limitations on mutual investment or an investment
financial
institution, etc. holds stocks of a credit rating agency (including equity interest; hereafter in this Article the same shall apply)
in excess of the
relevant investment limit under each subparagraph of Article 5 (2), the
extent of the exercise of voting rights on such stocks shall be restricted to the limit set forth in each subparagraph of the
said paragraph and
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USE AND PROTECTION OF CREDIT INFORMATION ACT
be brought into conformity with such limit without delay.
(2) The Financial Services Commission may order a company affiliated with an enterprise group subject to limitations on mutual investment
or
an investment financial institution, etc. that holds the stocks of a credit rating agency in excess of the relevant investment
limit under each
subparagraph of Article 5 (2) to dispose of such excessive stocks within
a specified period of six months.
CHAPTER Ⅵ PROTECTION OF CREDIT INFORMATION SUBJECT
Article 31 (Public Notification of Credit Information Utilization Status) A credit information company, a credit information collection agency, and a credit information provider/user determined by Presidential Decree shall publicly announce the matters concerning the type, use, and receivers of credit information that they manage, and the rights of a credit information subject, etc., as prescribed by Presidential Decree.
Article 32 (Consent to Provision and Use of Personal Credit Information) (1) If a credit information provider/user intends to provide personal credit information determined by Presidential Decree, including in- formation on loan, guarantee, etc., to any other person, he/she shall obtain prior consent from the individual concerned by using the method set out in any of the following subparagraphs:
1. In writing;
2. Electronic documents bearing a certified digital signature under
subparagraph 3 of Article 2 of the Digital Signature Act (referring to electronic documents under subparagraph 1 of Article 2
of the
Framework Act on Electronic Commerce);
3. Entering the personal identification number by wire or wireless com- munication that may ensure stability and reliability of the
consent
to provide such information, in consideration of the details and purpose
of the personal credit information to be provided;
4. Obtaining consent from an individual after notifying him/her of the consent by wire and wireless communication. In such cases,
evidential
material shall be obtained and maintained by, for instance, recording the verbal dialogue concerning identification of the
individual,
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questions as to whether the individual consents and his/her answers
thereto, etc., and post-notification procedures shall be carried out, as prescribed by Presidential Decree;
5. Other means determined by Presidential Decree.
(2) A person who intends to be provided with the personal credit in- formation prescribed by Presidential Decree by a credit bureau
or a credit
information collection agency, shall obtain consent from the individual concerned by a means set forth in any subparagraph of paragraph
(1),
as prescribed by Presidential Decree. In such cases, the person who intends
to be provided with personal credit information shall notify the individual concerned that credit rating may be degraded at the time
of such inquiry.
(3) Where a credit bureau or a credit information collection agency pro-
vides personal credit information under paragraph (2), it shall confirm whether the person who intends to receive such personal
credit in-
formation has obtained consent under paragraph (2), as prescribed by
Presidential Decree.
(4) Where any credit information company, etc. provides personal credit information in cases falling under any of the following
subparagraphs,
paragraphs (1) through (3) shall not apply:
1. When a credit information company provides such information for the purpose of performing central management and utilization
thereof
with another credit information company or credit information col- lection agency;
2. When such provision is required to perform a contract, and to entrust
the processing of credit information under Article 17 (2);
3. When the relevant personal credit information is provided as all or part of rights and obligations are transferred by
way of business
transfer, division, merger, etc.;
4. When personal credit information is provided for a person who uses the information for purposes prescribed by Presidential
Decree,
including claims collection (applicable only to the credit which is an object of collection), license and authorization, determination
of a
company s credit worthiness, and transfer of securities;
5. When personal credit information is provided in accordance with a court order for submission thereof or a warrant issued by a judicial
officer;
6. When such information is provided upon the request of a prosecutor
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USE AND PROTECTION OF CREDIT INFORMATION ACT
or judicial police officer, in the event of occurrence of an emergency
where a victim s life is in danger or he/she is expected to suffer bodily injury, etc., so that no time is available to issue a judicial
warrant
under subparagraph 5. In such cases, the prosecutor offered with personal credit information shall, without delay, seek a warrant
from
a judicial officer, and the judicial police officer shall apply for a warrant
to the prosecutor, who in turn seeks it from a judicial officer. Where the warrant is not issued within 36 hours from receipt of the
personal
credit information, the personal credit information provided shall be
scrapped without delay;
7. When such information is provided as the head of a competent gov- ernment office requests, in writing, for the purpose of inquiry
and
examination in accordance with Acts pertaining to taxes or demands the taxation data required to be provided in accordance with Acts
pertaining to taxes;
8. When personal credit information held by a financial institution is provided to a foreign financial supervisory body in
accordance with
international conventions, etc.;
9. When such information is otherwise provided in accordance with other
Acts.
(5) Persons who intend to provide personal credit information to any
other person and who are provided with such information under any sub- paragraph of paragraph (4) shall notify or publicly disclose
the credit
information subject concerned of the fact of and reason for such provision,
as prescribed by Presidential Decree.
(6) Any credit information provider/user prescribed by Presidential Decree, who provides personal credit information to any other
person subject to
paragraph (4) 3, shall obtain approval from the Financial Services
Commission with regard to the matters determined by Presidential Decree, including the scope of credit information provided.
(7) Where a credit information company, etc. provides personal credit information, it shall verify the identity of the person
who is provided with
the personal credit information and purpose of use thereof, as determined
and publicly notified by the Financial Services Commission.
(8) If there exist conflicts as to whether prior consent has been obtained under paragraph (1), etc., the credit information provider/user
who has
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provided with the personal credit information, shall prove such fact.
Article 33 (Use of Personal Credit Information)
Personal credit information shall be used only for the purpose of determin- ing whether a commercial transaction relationship requested
by the rele-
vant credit information subject, including the financial transaction, (ex- cluding employment relationship; hereinafter the same shall
apply) is
established and maintained: Provided, That in cases falling under any
of the following subparagraphs, the same shall not apply:
1. Where an individual consents, in a manner prescribed by any sub- paragraph of Article 32 (1), to use his/her personal credit information
for purposes other than determined in the main sentence, excluding each subparagraph of this Article;
2. Where the personal credit information, which has been directly provided
by an individual (including the credit information obtained through commercial transactions with the individual) is used for the original
purposes that it was provided for (excluding the purposes of introduc-
ing or soliciting goods and services);
3. Cases under subparagraphs of Article 32 (4);
4. Other cases corresponding with provisions of subparagraphs 1 through
3, determined by Presidential Decree.
Article 34 (Provision and Use of Personal Identification Information) (1) Where a credit information provider/user intends to provide personal identification information prescribed by Presidential Decree (hereinafter referred to as personal identification information ) for a credit infor- mation company, etc., it shall obtain prior consent from the person concerned.
(2) Personal identification information shall be used only for the purposes agreed by the person concerned or, if such information
has been provided directly by the person concerned, it shall be used only for the original purposes that it was provided
for.
(3) Where personal identification information is provided and used for the purpose of identifying a credit information subject to
provide personal credit information in accordance with this Act, paragraphs (1) and (2) shall not apply. In such cases, the person
provided with personal identi- fication information shall not use such information or provide it for any other third party for
purposes other than to meet the provision re-
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USE AND PROTECTION OF CREDIT INFORMATION ACT
quirements.
(4) Where personal identification information is provided and used in
accordance with the provisions of Article 32 (4) 4 through 9, paragraphs
(1) and (2) shall not apply.
Article 35 (Requirement to Notify Provision of Credit Information) Where a credit information company, etc. provides a credit information subject s credit information (hereinafter referred to as his/her own in- formation ), he/she may require the credit information company, etc. to notify him/her of the person who receives such information, purposes of use thereof, date of provision thereof, main contents of his/her own in- formation provided, etc. or to allow him/her to search such information through an Internet homepage, as prescribed by Presidential Decree. In such cases, the credit information company, etc. shall meet the require- ment unless any special reason exists to the contrary.
Article 36 (Notification, etc. of Credit Information Giving Rise to Refusal of Commercial Transaction)
(1) Where a credit information provider/user refuses or cancels a com-
mercial transaction relationship with its counterparty on the basis of person-
al credit information prescribed by Presidential Decree, which has been
provided by a credit bureau and a credit information collection agency,
the credit information provider/user shall, upon the request of the credit
information subject concerned, notify the credit information subject con-
cerned of the matters prescribed by Presidential Decree, including the
credit information that gave rise to the refusal or cancellation thereof.
(2) Where a credit information subject has any objection to the details
of his/her own information notified under paragraph (1), he/she may
request, within 60 days from the receipt of such notification under para-
graph (1), the credit bureau and the credit information collection agency,
which have collected and provided such information, to verify the accuracy
of such information.
(3) With regard to the procedures for verification under paragraph (2), Article 38 shall apply mutatis mutandis.
Article 37 (Rights, etc. to Revoke Consent to Provide and Use Personal
Credit Information)
(1) An individual credit information subject may revoke, as prescribed
by Presidential Decree, the consent which has been provided to a credit
information provider/user in ways prescribed by any subparagraph of
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Article 32 (1) to provide his/her personal credit information for purposes
other than assessing the individual s credit worthiness, etc. by forwarding
such information to a credit bureau or a credit information collection agency: Provided, That where it becomes difficult to perform a contract
or serve the purposes set out in the main sentence exceeding each sub- paragraph of Article 33, including failure to perform certain
services agreed with the credit information subject, unless the personal credit information concerned is provided to another credit
information provider/user that has not obtained his/her consent, if the customer intends to revoke consent, he/she shall clarify
his/her intention not to be provided with the services concerned.
(2) An individual credit information subject may, as prescribed by Pres- idential Decree, request a credit information provider/user
to stop con-
tacting him/her for the purpose of introducing or soliciting goods or
services.
(3) A credit information provider/user shall notify the individual who is a counterparty, of the details of the rights and means to
exercise such rights under paragraphs (1) and (2), in writing, via electronic documents,
or orally, and, if he/she makes a demand under paragraphs (1) and (2), it shall immediately comply with such demand. In such cases,
if such notification has been made orally, the additional post-notification
procedures prescribed by Presidential Decree shall be followed.
(4) A credit information provider/user shall have a procedure in place to perform the obligations under paragraph (3), as prescribed
by Presidential
Decree.
(5) A credit information provider/user shall take necessary measures, as prescribed by Presidential Decree, to prevent an individual
credit infor-
mation subject from bearing the monetary costs arising from such demand under paragraph (2), including telephone bills.
Article 38 (Demand for Perusal and Correction of Credit Information, etc.) (1) A credit information subject may request a credit information company, etc. to provide him/her with his/her own information retained by the credit information company, etc. or allow him/her to make a perusal thereof by presenting a certificate identifying them or having their identity checked in ways prescribed by Presidential Decree, including telephone, Internet homepage, etc. If his/her own information is incorrect, he/she may demand
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USE AND PROTECTION OF CREDIT INFORMATION ACT
correction thereof, as determined and publicly notified by the Financial
Services Commission.
(2) A credit information company, etc. requested to make such correction
under paragraph (1) shall, if justifiable grounds are deemed to exist, immediately fill in phrases stating that the credit information
in question
is being requested for correction or subject to fact-finding inquiries. It
shall stop providing and using the credit information concerned, without delay, and examine as to whether it is true. If such information
turns
out to be incorrect or unverifiable, the credit information shall be deleted
or corrected.
(3) A credit information company, etc. which made a deletion or correction under paragraph (2), shall notify any person who has been
provided with
such information within the last six months and any person who the credit information subject requests to be advised of the details
of the deleted
or corrected credit information.
(4) A credit information company, etc. shall inform the credit information subject of the results of the actions taken under paragraphs
(2) and (3)
within seven days, and if any objection to such result of the actions exists,
the credit information subject may request the Financial Services Com- mission to make a correction thereto, as prescribed by Presidential
Decree.
(5) Upon the receipt of a request for correction under paragraph (4), the
Financial Services Commission shall have the Governor of the Financial
Supervisory Services established under Article 24 of the Act on the
Establishment, etc. of Financial Services Commission (hereinafter re- ferred to as the FSS Governor ) examine as to whether such
information is correct and, according to its findings, may order the credit information
company, etc. to make a correction or take other necessary measures.
(6) A person who examines factuality under paragraph (5) shall carry a certificate indicating his/her authority to present it to persons
concerned.
(7) Where a credit information company, etc. has implemented corrective
measures in accordance with a corrective order by the Financial Services
Commission under paragraph (5), it shall report the results to the Financial
Services Commission.
Article 39 (Right to Free Perusal)
A credit bureau shall allow an individual credit information subject to be provided with his/her own information or make a perusal thereof on a
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free-of-charge basis, once or more, at regular intervals prescribed by
Presidential Decree, not exceeding one year.
Article 40 (Prohibited Matters for Credit Information Company, etc.) No credit information company, etc. shall engage in conducting the acts under the following subparagraphs, and no person, other than a credit information company, etc., shall perform the act set forth in the main sentence of subparagraph 4 as its business or conduct the act set forth in subparagraph 5:
1. Providing the client with false information;
2. Coercing anyone into requesting investigation of credit information;
3. Coercing an investigation subject into providing investigative data and answering questions;
4. Finding out a certain person s whereabouts and contacts (hereinafter referred to as whereabouts, etc. ) or investigating his/her
private
life, other than commercial transaction relationships, including finan-
cial transactions: Provided, That in cases where a credit information
company licensed to engage in claims collection business finds out a certain person s whereabouts, etc. to conduct its business
or it is
allowed to find out a certain person s whereabouts, etc. pursuant to other Acts and subordinate statutes, the same shall
apply;
5. Using titles, including intelligence service agent , detective , or
other titles similar thereto;
6. Inflicting material loss on any investor, lender, etc. in relation to financial instruments, legal entities and indirect investment
vehicles
by intention or gross negligence while engaging in credit rating services.
Article 41 (Prohibited Matters for Claims Collection Agency)
(1) No claims collection agency shall lend its name to another person to allow him/her to do claims collection business.
(2) No claims collection agency shall use words other than the phrase
containing credit information for its trade name unless otherwise allowed by other Acts and subordinate statutes: Provided, That in cases where
a claims collection agency engages in credit inquiry business or credit rating business as well, the same shall apply.
Article 42 (Prohibition of Disclosure, etc. for Non-Business Purposes) (1) No person who is or was an executive or employee of a credit in- formation company, etc. and a person entrusted with the processing of
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USE AND PROTECTION OF CREDIT INFORMATION ACT
credit information under Article 17 (2) (hereinafter referred to as person
related with credit information business ) shall disclose or use any person- al confidential information, including credit information
and privacy
(hereinafter referred to as personal confidential information ) acquired during the course of business for non-business purposes.
(2) No act that a credit information company, etc. and a person related
with credit information business provide credit information for a credit information company, etc. under this Act shall be deemed
to be the dis-
closure or use of credit information for non-business purposes under para-
graph (1).
(3) If a person who has obtained personal confidential information dis- closed, in violation of paragraph (1) (including another person
who obtains
such disclosed personal confidential information from such person) learns that such personal confidential information has been divulged
in breach
of paragraph (1), the person shall not supply or use such personal con-
fidential information.
(4) No person who has been provided with personal credit information from a credit information company, etc. and a person related
with credit
information business, shall not provide such personal credit information to any other person: Provided, That in cases where such provision is
allowed by this Act or other Acts, the same shall not apply.
Article 43 (Liability to Compensate for Damages)
(1) Where a credit information company, etc. and other credit information users have violated this Act and inflicted damage on a credit
information
subject, they shall be liable to compensate such damage: Provided, That
in cases where a credit information company, etc. and other credit
information users have proven an absence of intention or negligence, the same shall not apply.
(2) Where a claims collection agency or a delegated claims collector has inflicted damage on obligators and persons related therewith,
it/he/she
shall compensate such damage: Provided, That in cases where it/he/she
has proven an absence of intention or negligence, the same shall not
apply.
(3) Where a credit information company which was requested to do the business set forth in Article 4(1) has inflicted damage on a
client for reasons attributable to the credit information company, it shall compen-
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sate such damage.
(4) Where a person entrusted with the processing of credit information under Article 17 (2) has violated and inflicted damage on a
credit in- formation subject, the person entrusted with the business and the con-
signee shall be jointly and severally liable to compensate such damage. (5) Where a delegated claims collector has violated this Act
or the Fair Debt Collection Practices Act and inflicted damage on obligators or per-
sons related therewith, the claims collection agency and delegated claims collector shall be jointly and severally liable to compensate
such damage:
Provided, That in cases where the claims collection agency has proven
an absence of intention or negligence, the same shall apply.
Article 44 (Credit Information Companies Association)
(1) Credit information companies may establish a Credit Information Companies Association for the purposes of promoting sound development
of credit information business and maintaining order in business among
credit information companies.
(2) The Credit Information Companies Association shall be a juristic person. (3) The Credit Information Companies Association
shall carry out the
business set forth in the following subparagraphs, as prescribed by its articles of association:
1. Maintaining sound order in business among credit information com-
panies;
2. Engaging in research and study to develop credit information business;
3. Counseling and handling complaints filed by credit information business users;
4. Any other business prescribed by Presidential Decree.
(4) Other matters concerning the Credit Information Companies Associ- ation not provided for in this Act shall apply mutatismutandisthe provi-
sions on incorporated associations under the Civil Act.
CHAPTER Ⅶ SUPPLEMENTARY PROVISIONS
Article 45 (Supervision, Inspection, etc.)
(1) The Financial Services Commission shall supervise as to whether a credit information company, etc. complies with this Act or orders under this Act.
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(2) The Financial Services Commission may, if deemed necessary for the
supervision under paragraph (1), order a credit information company, etc. to report in relation to its business, financial standing,
etc.
(3) The FSS Governor may have the personnel of the FSS inspect the business and financial standing of a credit information company,
etc. under
this Act.
(4) The FSS Governor may, if deemed necessary for an inspection under paragraph (3), request a credit information company, etc. to
submit data
and have persons concerned attend meetings and state their opinions.
(5) A person who conducts an inspection under paragraph (3) shall carry a certificate indicating his/her authority to present it to
persons concerned.
(6) The FSS Governor shall report the findings of an inspection under
paragraph (3) to the Financial Services Commission, as prescribed by the
Financial Services Commission.
(7) If a credit information company, etc. is deemed likely to damage sound management of credit information business and the rights
and interests of a credit information subject by breaching this Act or orders under this
Act, the Financial Services Commission shall take measures set forth in
any of the following subparagraphs or have the FSS Governor take any action falling under the provisions set forth in subparagraphs
1 through
3:
1. Caution or warning to a credit information company, etc.;
2. Caution or warning to executives;
3. Request for disciplinary action, including caution, suspension from office, reduction in salary, and official reprimand, against
employees;
4. Recommendation for dismissal or request for suspension from office against executives, or demand for dismissal from office against
em-
ployees;
5. Corrective order against violations;
6. Suspension of provision of credit information.
Article 46 (Applicable Special Cases for Credit Rating Agency)
The provisions of Articles 20 (1) and (3), Articles 31, 38, and 42 shall not apply to a credit rating agency.
Article 47 (Submission of Business Report)
(1) A credit information company and a credit information collection agency shall prepare a quarterly business report in the format set forth
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by the FSS Governor and submit it to the FSS Governor by the last
day of the month following the last month of every quarter.
(2) The report under paragraph (1) shall state names and be affixed
with seals of the representative, in-charge personnel or agent thereof. (3) Details and other matters necessary to prepare the business
report
under paragraph (1) shall be determined by the FSS Governor.
Article 48 (Hearings)
Where the Financial Services Commission intends to revoke the license or authorization of a credit information company pursuant to
Article 14
(1) or cancel the registration of a delegated claims collector pursuant to
Article 27 (6), it shall hold a hearing.
Article 49 (Delegation and Entrustment of Authority)
The Financial Services Commission s authorities prescribed by Presi- dential Decree under this Act may be delegated or entrusted to
the Special Metropolitan City Mayor, a Metropolitan City Mayor, DoGovernor, the
Governor of a Special Self-Governing Province, the FSS Governor, the Credit Information Companies Association, or other persons determined
by Presidential Decree, as prescribed by Presidential Decree.
Article 50 (Penal Provisions)
(1) Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than five years or
by a fine
not exceeding 50 million won:
1. Any person who performs a service provided for in subparagraphs of Article 4 (1) without obtaining a license or authorization
therefor,
in violation of Article 4 (2) or 10 (1);
2. Any person who obtains a license or authorization under Article 4 (2) or 10 (1) by false or other fraudulent means;
3. Any person who violates Article 29 (9);
4. Any person who violates Article 32 (1) or (2);
5. Any person who violates Article 33;
6. Any person who violates Article 42 (1), (3) or (4).
(2) Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than three years
or by a fine
not exceeding 30 million won:
1. Any person who conducts business during a period of suspension under Article 14 (2);
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USE AND PROTECTION OF CREDIT INFORMATION ACT
2. Any person who violates Article 16;
3. Any person who, without authorization, changes or deletes infor- mation in a credit information computer system under Article
19 (1)
or make it unusable in other ways, or a person who, without author- ization, retrieves, duplicates or uses in other ways such
credit in-
formation;
4. Any person, not being a credit information collection agency, who establishes the Common Computer Network under Article
25 (6);
5. Any person who violates Article 29 (2);
6. Any person who violates Article 34 (1), (2), or (3) (latter part);
7. Any person who violates any subparagraph of Article 40;
8. Any person who violates Article 41 (1).
(3) Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year or
by a fine not
exceeding ten million won:
1. Any person who obtains stocks without approval, in violation of Ar- ticle 9 (1);
2. Any person who fails to dispose of stocks obtained without approval,
in violation of an order under Article 9 (2);
3. Any person who entrusts the processing of credit information to a person who failed to meet the given requirements, in
violation of
Article 17 (2) and a person who is entrusted therewith;
4. Any person who violates Article 18 (2);
5. Any person who violates Article 20 (2);
6. Any person who violates Article 21;
7. Any person who renders claims collection services without register- ing with the Financial Services Commission as a delegated
claims
collector, in violation of Article 27 (3);
8. Any person who violates Article 27 (4);
9. Any person who, in violation of Article 27 (5), collects claims that
are not the object of collection, or who renders claims collection services through a delegated claims collector who is not
registered,
or who has been registered with another claims collection agency, or
who is suspended from his/her business;
10. Any person who renders claims collection services during a period of suspension under Article 27 (7);
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11. Any person who violates Article 29 (6);
12. Any person who fails to perform an order to dispose of stocks by the
Financial Services Commission under Article 30 (2).
Article 51 (Joint Penal Provisions)
Where the representative of a juristic person, or the agents, employees, or any other person employed by a juristic person or individual
violates
the provisions of Article 50 in connection with business of the juristic person or individual, the fine referred to in the relevant
Article shall
be imposed upon the juristic person or individual concerned in addition
to the violator: Provided, That in cases where the juristic person or in-
dividual has not been negligent in exercising due care and oversight in relation to the relevant business to prevent such violation,
the same
shall not apply.
Article 52 (Fines for Negligence)
(1) Any person who, in violation of Article 32 (7), fails to verify the identity of a person provided with personal credit information
and the purpose of use thereof shall be punished by a fine for negligence not
exceeding thirty million won.
(2) A person who violates Article 10 (4) shall be punished by a fine for negligence not exceeding 20 million won.
(3) Any person who falls under any of the following subparagraphs shall
be punished by a fine for negligence not exceeding ten million won:
1. Any person who violates Article 8;
2. Any person who violates any provision set forth in Articles 11 through
13;
3. Any person who, in violation of Article 17 (1), entrusts the collection and investigation of credit information without consent
of the client;
4. Any person who violates Article 18 (1);
5. Any person who violates Article 19;
6. Any person who violates Article 20 (3);
7. Any person who violates Article 23 (5);
8. Any person who violates Article 29 (3) through (5), (7) or (8);
9. Any person who violates Article 31;
10. Any person who violates Article 32 (3), (5) or (6);
11. Any person who violates the latter part of Article 35;
12. Any person who violates Article 36 (1) or (3);
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USE AND PROTECTION OF CREDIT INFORMATION ACT
13. Any person who violates Article 37 (3);
14. Any person who violates Article 38 (2) through (5) or (7);
15. Any person who fails to comply with the orders or refuses, obstructs, or evades the inspection and request set forth in Article
45 (2) through (4);
16. Any person who, in violation of Article 47, fails to submit a report
or submits a report containing false information.
(4) Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding five
million won:
1. Any person who violates Article 20 (1);
2. Any person, who in violation of Article 27 (8), fails to present a cer- tificate hen rendering claims collection services;
3. Any person who violates Article 39.
(5) Fines for negligence under paragraphs (1) through (4) shall be imposed and collected by the Financial Services Commission,
as prescribed
by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Use of Similar Names)
No person who has used the title credit rating or similar in his/her trade name before the Use and Protection of Credit Information Act enters into force as amended by Act No. 6428, shall be governed by the amended
provisions of Article 12.
Article 3 (Special Cases concerning Provision and Utilization of Personal
Credit Information)
Where a credit information provider/user has established commercial transaction relationships, including financial transactions,
with a credit
information subject by verifying his/her personal credit information and
obtaining consent therefrom under the amended provisions of Article 32 (1) before this Act enters into force, if a credit information
provider/user
intends to be provided with personal credit information of the credit
information subject for the purpose of maintaining and managing such commercial transaction relationship, including financial
transactions,
the amended provisions of Article 32 (2) shall not apply.
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Article 4 (Transitional Measures concerning Credit Information Business
Owner)
A credit information business owner licensed to engage in credit infor-
mation business pursuant to the previous provisions at the time this
Act enters into force shall be deemed to have been licensed as a credit
information company under this Act.
Article 5 (Transitional Measures concerning Penal Provisions and Fines for Negligence)
Where penal provisions or fines for negligence have been imposed against
any act conducted before this Act enters into force, the previous provisions
shall apply.
Article 6 (Transitional Measures concerning Credit Investigation Com- pany)
(1) Where a person who has been licensed to engage in credit inves-
tigation business in accordance with the Credit Investigation Business
Act repealed by the Use and Protection of Credit Information Act (Act
No. 4866), meets the capital requirements under the amended provisions
of Article 6 (2) 1, notwithstanding the amended provisions of Article
5 (1), he/she may be licensed to engage in credit inquiry business. If
he/she meets the capital requirements under the amended provisions
of Article 6 (2) 2, notwithstanding the amended provisions of Article
5 (1), he/she may be licensed to engage in claims collection business.
(2) Where a person who has been licensed to engage in credit investigation
business under paragraph (1), intends to transfer such business, the
transferee shall be a juristic person licensed to engage in credit in-
formation business under the amended provisions of Article 4 (2).
Article 7 (Transitional Measures concerning Permit for Modification) A person licensed for modification of his/her credit information business in accordance with the previous provisions at the time this Act enters into force shall be deemed to have declared or reported such modification
under the amended provisions of Article 8.
Article 8 (Transitional Measures concerning Approval for Change in
Controlling Shareholder)
The controlling shareholder of a credit information company at the time
this Act enters into force shall be deemed to have been approved for the
change in controlling shareholder under the amended provisions of Article
9.
Article 9 (Transitional Measures concerning Disqualifications for Persons
Engaged in Credit Information Business)
Where any person engaged in credit information business at the time
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USE AND PROTECTION OF CREDIT INFORMATION ACT
this Act enters into force is disqualified under the amended provisions of Articles 22 (1), 27 (1) and 28, on grounds that occurred
before this
Act enters into force, notwithstanding such amended provisions, the previous provisions shall apply.
Article 10 (Transitional Measures concerning Registration of Delegated
Claims Collector)
Notwithstanding the amended provisions of Article 27 (5), a claims collec-
tion agency may render claims collection services through its own delegated
claims collectors unregistered in accordance with the amended provisions
of Article 27 (3) as of the date this Act enters into force: Provided, That
they shall be registered pursuant to the amended provisions of Article 27
(3) within three months from the date this Act enters into force, and no
claims collection agency shall render any claims collection services through
any delegated claims collector unregistered after the aforementioned
period lapses.
Article 11 (Transitional Measures concerning Establishment of Associa- tion, etc.)
An incorporated credit information association established by the Civil
Act before this Act enters into force shall be deemed the Credit Infor-
mation Companies Association established under the amended provisions
of Article 44.
Article 12 Omitted.
Article 13 (Relationship with other Acts and Subordinate Statutes)
In the event that other Acts and subordinate statutes cite the previous
provisions of the Use and Protection of Credit Information Act at the time
this Act enters into force, if the cited provisions exist in this Act, the
provisions of this Act shall be deemed to have been cited in lieu of the
previous provisions.
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