ENFORCEMENT DECREE OF THE TRADE INSURANCE ACT WhollyAmended bypresidential Decree No.14410, Nov. 5, 1994 Amended bypresidential Decree No.14438, Dec. 23, 1994 Presidential Decree No.15296, Feb. 28, 1997 Presidential Decree No.15750, Apr. 1, 1998 Presidential Decree No.16836, Jun. 7, 2000 Presidential Decree No.18268, Jan. 29, 2004 Presidential Decree No.18312, Mar. 17, 2004 Presidential Decree No.19513, Jun. 12, 2006 Presidential Decree No.20257, Sep. 10, 2007 Presidential Decree No.20678, Feb. 29, 2008 Presidential Decree No.21641, Jul. 27, 2009 Presidential Decree No.21806, Nov. 2, 2009 Presidential Decree No.22220, Jun. 28, 2010 Article 1 (Purpose) The purpose of this Decree is to prescribe matters delegated by the Trade Insurance Act, and matters necessary for the enforcement thereof. Article 2 Deleted. <by Presidential Decree No. 16836, Jun. 7, 2000> Article 3 (Scope of Small and Medium Enterprises) "Those prescribed by Presidential Decree" in subparagraph 2 of Article 8-3 of the Trade Insurance Act (hereinafter referred to as the "Act") means a person deemed necessary by the Minister of Knowledge Economy, from among persons whose principal business objective is to support trading activities of small and medium enterprises. Article 3-2 (Methods of Issuing Bonds) Trade Insurance Fund Bonds under Article 34-2 of the Act (hereinafter referred to as "bonds") shall be issued by means of public offering, underwriting or public sale. Article 3-3 (Form of Bonds) Bonds shall be issued in a bearer form: Provided, that upon request from a subscriber or holder, bonds in a bearer form may be issued in a registered form, or vice versa. Article 3-4 (Subscription of Bonds) (1) A person who intends to apply for subscription of bonds shall indicate the number of bonds to be acquired for each type and his/her address in two copies of written application for subscription of bonds and then sign his/her name and affix the seal. (2) A written application for bonds shall include the following: 1. The name of the Korea Trade Insurance Corporation under Article 37 of the Act (hereinafter referred to as the "Corporation"); 2. The total amount of bonds to be issued; 3. The face value of bonds for each type; 4. The interest rate of bonds; 5. The methods and deadline for repayment of principal; 6. The methods and deadline for payment of interest; 7. The issuing value or minimum value of bonds; 8. If any bond is not repaid, the total amount thereof; 9. If any person entrusted with the public offering of bonds exists, the name or trade name and address of the person. (3) Where bonds are issued after the minimum value is set, a subscriber shall indicate the value of subscription on an application for bonds. Article 3-5 (Firm Commitment Underwriting, etc. of Bonds)
Article 3-4 shall not apply where the total amount of issued bonds is underwritten under a contract. If a person entrusted with the public offering of bonds underwrites part of the bonds, the same shall apply to the bonds underwritten. Article 3-6 (Total Amount of Bonds to be Issued) Even if the total amount of subscription of bonds falls short of the total amount of bonds to be issued, which is indicated in an application for bonds, the bonds may be issued. In such cases, such fact shall be indicated in the application for bonds and the total amount of subscription for bonds shall be the total amount of bonds to be issued. Article 3-7 (Payment of Underwriting Value of Bonds) (1) The Corporation shall have subscribers pay the total amount of bonds underwritten immediately after the subscription for bonds is complete. (2) A person entrusted with the public offering of bonds may conduct activities under paragraph (1) under his/her account for the Corporation. Article 3-8 (Timing of Issuing Bonds) Where the total amount of bonds are not paid, the bonds shall not be issued: Provided, That the same shall not apply where the bonds are issued by means of public sales under Article 3-10. Article 3-9 (Matters to be Indicated on Bonds) The following matters shall be indicated on bonds and then the President of the Corporation (hereinafter referred to as the "President") shall sign and affix the seal: 1. Serial number of bonds; 2. Issuance date of bonds; 3. Matters under Article 3-4 (2) 1 through 6. Article 3-10 (Issuance by Public Sale of Bonds) (1) The Corporation shall, when issuing the bonds by means of public sale, publicly announce the period for public sale and the matters under Article 3-4 (2) 1 through 7. (2) In cases of issuance of bonds under paragraph (1), an application for bonds under Article 3-4 shall not be prepared. (3) The bonds issued under paragraph (1) shall include the following matters: 1. Serial number of bonds; 2. Issuance date of bonds; 3. Matter under Article 3-4 (2) 1 and subparagraph 3 through 6 of the same paragraph. Article 3-11 (Bond Ledger) (1) The Corporation shall keep a bond ledger indicating the following matters at its principal office: 1. Number of bonds for each type and serial numbers thereof; 2. Issuance date of bonds; 3. Matters under Article 3-4 (2) 2 through 6. (2) In cases of bonds in a bearer form, the following matters shall be indicated in a bond ledger in addition to the matters under each subparagraph of paragraph (1): 1. Name and address of the holder of bonds; 2. Acquisition date of bonds. (3) A person who has a right to bonds may inquire the inspection of a bond ledger at any time during the business hours of the Corporation. Article 3-12 (Registered Bonds) (1) With respect to transfer of registered bonds, if the acquirer fails to indicate his/her name and address on the bond ledger, the acquirer shall not oppose against the Corporation or a third person. (2) If registered bonds are for the right of pledge, and a pledgee fails to indicate his/her name and address on the bond ledger, the pledgee shall not oppose against the Corporation or a third person. (3) If the right of pledge is created pursuant to paragraph (2), the Corporation shall indicate the fact on the relevant bonds. Article 3-13 (Purchase and Retirement of Bonds) The Corporation may purchase bonds and retire them within the extent that does not undermine the performance of business under Article 53 of the Act.
Article 3-14 (Defects on Rights) (1) Where bonds with rights in a bearer form are repaid, if any defect on rights exists, the amount equivalent to the rights shall be exempt from the repayment amount. (2) The holder of rights under paragraph (1) may request for the payment of the exempt amount in exchange of the rights at any time. Article 3-15 (Notice, etc. to Subscribers of Bonds) (1) Notice or preemptive notice to a subscriber or a right holder before the issuance of bonds shall be sent to the address indicated on the application for bonds: Provided, That if any other address is notified to the Corporation, the notice or preemptive notice shall be sent to such address. (2) Notice or preemptive notice to a holder of registered bonds shall be sent to the address indicated on the bond ledger: Provided, That if any other address is notified to the Corporation, the notice or preemptive notice shall be sent to such address. (3) Notice or preemptive notice to a holder of bonds in a bearer form shall be made by means of public announcement: Provided, That if the address is known, the notice or preemptive notice may be sent to the address. Article 4 (Registration of Establishment) The registration of establishment of the Corporation shall be made within two weeks from the date the Minister of Knowledge Economy grants authorization. Article 5 (Registration of Establishment of New Branch Office or Agency) (1) The Corporation shall, when it establishes a new branch office or agency, register the matters under the following classification: 1. The name and location of the branch office or agency established, within two weeks in the location of its principal office; 2. The matters under each subparagraph of Article 40 (2) of the Act and the name and location of the branch office or agency established, within three weeks in the location of the branch office or agency established. (2) Where a new branch office or agency is established in the area under the jurisdiction of another registry, only the name and location of the branch office or agency shall be registered within two weeks. Article 6 (Registration of Relocation) (1) Where the Corporation relocates its principal office, branch office or agency in the area under the jurisdiction of another registry, the Corporation shall register the matters under the following classification: 1. The intent of relocation, within two weeks in the former location; 2. The matters under each subparagraph of Article 40 (2) of the Act and the name and location of the branch office or agency, within three weeks in the new location. (2) If the principal office, branch office or agency is relocated in the area under the jurisdiction of the same registry, only the intent of relocation shall be registered within two weeks. Article 7 (Registration of Change) If any of the matters prescribed in the subparagraphs of Article 40 (2) of the Act or the matters registered under Article 5 (1) of this Decree is changed, the Corporation shall register such change within two weeks in the location of its principal office, and within three weeks in the location of its branch office or agency. Article 8 (Registration of Appointment of Representative) When the President appoints a representative, the President shall register the following matters within two weeks in the location of the principal office, branch office, or agency to which the representative is assigned. The same shall also apply where any registered matter is changed: 1. Name and address of the representative; 2. Name and location of the principal office, branch office or agency to which the representative is assigned; 3. If the authority of the representative is restricted, the details thereof. Article 9 (Reckoning Registration Period) With respect to matters to be registered by the Corporation, which require to be authorized or approved by the Minister of Knowledge Economy, the registration period shall be calculated from the date on which the written authorization or approval arrives.
Article 10 (Competent Registry) The competent registry of the Corporation s registration shall be the district court, its branch court, or registry having the jurisdiction over the location of the principal office, branch office or agency of the Corporation. Article 11 (Applicant for Registration) For the registration of the Corporation, the President shall be the applicant, except for the registration of establishment. Article 12 (Documents to be Attached to Application for Registration) Each application for registration under Articles 5 through 8 shall be accompanied by documents attesting grounds therefor. Article 13 (Provisions Applicable Mutatis Mutandis for Registration) Except as otherwise prescribed by this Decree, the Non-Contentious Case Litigation Procedure Act and the Commercial Registration Act shall apply mutatis mutandis to the registration of the Corporation. Article 14 (Matters to be Decided by Operating Committee) "Matters prescribed by Presidential Decree" in Article 43 (2) of the Act means the following matters: 1. Modification of the articles of association of the Corporation; 2. Budget and settlement of accounts of the Corporation; 3. Establishment and modification of the operating manuals; 4. Loan from the Trade Insurance Fund, issuance of bonds and contribution to other corporations; 5. Restriction on the materialization of any insurance relations; 6. Matters on payment of claims for indemnity; 7. Other matters which the President deems important with respect to the operation of trade insurance. Article 15 (Composition of Operating Committee) (1) The operating committee shall be comprised of not more than ten members including one chairperson. (2) The President shall become the chairperson, and the following persons shall become the members: 1. From among public officials in general service belonging to the Senior Civil Service under the control of the Minister of Strategy and Finance, the Minister of Foreign Affairs and Trade, and the Minister of Knowledge Economy, one person who is nominated by each Minister; 2. Deputy-administrator of the Small and Medium Business Administration; 3. Managing director of the Export-Import Bank of Korea; 4. Vice-president of the Korea Trade-Investment Promotion Agency; 5. Vice-president of the Korea International Trade Association; 6. Other persons nominated by the Minister of Knowledge Economy, from among those with abundant knowledge and experience in trade insurance. Article 16 (Chairperson) The chairperson shall represent the operating committee, and shall convene meetings and preside over them, as prescribed by the articles of association. Article 17 (Operational Regulations) In addition to the matters prescribed by this Decree, matters necessary for the operation of the operating committee shall be determined by the chairperson through a resolution by the operating committee. Article 18 Deleted. <by Presidential Decree No. 16836, Jun. 7, 2000> Article 19 (Budget and Settlement of Accounts) The budget of the Corporation shall be approved by the Minister of Knowledge Economy before the fiscal year commences, and the settlement of accounts, within two months after the fiscal year ends, pursuant to Article 55 of the Act. Article 20 (Scope, etc. of Public Organizations) (1) "Public organizations prescribed by Presidential Decree" in Article 58 (1) of the Act means the following institutions:
1. A government-financed enterprise under subparagraph 6 of Article 2 of the State Property Act; 2. A government-invested institution; 3. A corporation in which a local government invests not less than 50/100 of the corporation's paid-in capital; 4. The Korea Financial Telecommunications and Clearings Institute established with permission from the Minister of Strategy and Finance under Article 32 of the Civil Act. (2) The head of a related agency which has been requested to investigate pursuant to Article 58 (2) of the Act shall designate a person in exclusive charge of the investigation, from among the employees under his/her control, and shall notify the President of such person's position and name. The same shall also apply where such person is changed. (3) The expenses incurred in the investigation under paragraph (2) may be paid by the Corporation within budgetary limits. Article 21 Deleted. <by Presidential Decree No. 22220, Jun. 28, 2010> ADDENDA (1) (Enforcement Date) This Decree shall enter into force on November 5, 1994. (2) (Transitional Measures) Any insurance contract entered into before this Decree enters into force, shall be governed by the previous provisions. (3) (Relation with other Acts and Subordinate Statutes) Where other Acts and subordinate statutes cite the previous provisions as at the time this Decree enters into force, and where the provisions corresponding thereto are included in this Decree, such corresponding provisions shall be deemed to have been cited. ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994> Articles 2 through 5 Omitted. ADDENDA <Presidential Decree No. 15296, Feb. 28, 1997> This Decree shall enter into force on March 1, 1997. Articles 2 through 7 Omitted. ADDENDA <Presidential Decree No. 15750, Apr. 1, 1998> This Decree shall enter into force on April 1, 1998. Articles 2 through 4 Omitted. ADDENDUM <Presidential Decree No. 16836, Jun. 7, 2000> ADDENDUM <Presidential Decree No. 18268, Jan. 29, 2004> ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004> ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006> This Decree shall enter into force on July 1, 2006. Articles 2 through 4 Omitted. ADDENDA <Presidential Decree No. 20257, Sep. 10, 2007> Articles 2 through 4 Omitted. ADDENDA <Presidential Decree No. 20678, Feb. 29, 2008>
(Proviso Omitted.) Articles 2 through 7 Omitted. ADDENDA <Presidential Decree No. 21641, Jul. 27, 2009> This Decree shall enter into force on July 31, 2009. (Proviso Omitted.) Articles 2 through 15 Omitted. ADDENDA <Presidential Decree No. 21806, Nov. 2, 2009> Article 2 Omitted. ADDENDA <Presidential Decree No. 22220, Jun. 28, 2010> This Decree shall enter into force on July 6, 2010. Article 2 Omitted. Article 3 (Relation with other Acts and Subordinate Statutes) A citation of the former provisions of the Enforcement Decree of the Export Insurance Act or the term "export insurance" by other Acts and subordinate statutes as at the time this Ace enters into force shall be deemed a citation of the Enforcement Decree of the Trade Insurance Act or the term "trade insurance", respectively, in lieu of the former provisions and term.