Article 31 (Business Manual)
The Bank shall formulate a business manual prescribing the method of performing duties under Article 18 (2) and (5) of the Act, and shall obtain approval from the Minister of Economy and Finance through a resolution by the Committee. The same shall also apply when the Bank intends to amend it.
Article 32 (Interest Rates on Loan and Discount and Rates for Guarantee Fees, etc.)
When the Bank assesses the interest rates on loan and discount, and rates for guarantee fees, etc under Article 18 (2) and (5) of the Act, it shall fix those rates so that they can be appropriated for office operating expenses, commission for business agency, interests-on borrowings, other miscellaneous expenses and depreciation of assets, except for the inevitable cases for the promotion of exportation, enhancement of competitiveness in exportation, and promotion of overseas investments and development of overseas resources, or promotion of international economic exchanges.
Article 33 (Restriction on Duties)
(1) When the Bank offers a loan, discounts bills, or guarantees debts under Article 18 (2) and (4) of the Act, it shall conduct a thorough and sufficient examination on the redemption, payment or fulfillment thereof.
(2) The ceilings on loans under Article 18 (5) of the Act shall be the sum of the amounts invested by or borrowed from the Government, reserves and surpluses.
Article 34 (Prohibition of Competition with Other Financial Institutions)
The Bank shall cooperate with other financial institutions in performing its duties under Article 18 of the Act, or supplement and encourage their functions, but shall not compete with other financial institutions.
Chapter VI Export-Import Financial Debentures
Article 35 (Export-Import Financial Debentures)
(1) The Bank may issue export-import financial debentures as provided for in Article 20 of the Act, and Articles 19 through 31 of the Enforcement Decree.
(2) The Government may guarantee the repayment of principal and interest accrued from the export-import financial debentures. When the Government bears the obligation of a guarantee debt in this manner, it shall obtain prior consent from the National Assembly under Article 92 of the National Finance Act.
Article 36 (Contingent Capital Securities)
(1) The Bank may, by a resolution adopted by the board of directors, issue bonds attaching a condition that the obligations to redeem the bonds and pay interests thereon shall be exempted or reduced in the event that the Financial Services Commission determines that a write-off, without which the Bank would become non-viable, is necessary, consults the Minister of Economy and Finance and requests the Bank to take necessary measures pursuant to Article 17-13 of the
Enforcement Decree (hereinafter referred to as “bail-in type contingent capital securities”).
(2) The ceiling of bail-in type contingent capital securities shall be 10 trillion Korean Won, and the issuance of bail-in type contingent capital securities shall be considered as the issuance of the export-import financial debentures under Article 28.
(3) If any ground to issue bail-in type contingent capital securities as prescribed in paragraph (1) occurs, the obligations to redeem the bonds and pay interests thereon shall be exempted or reduced(hereinafter referred to as “debt readjustment”): Provided, that the board of directors may decide otherwise on the contents of bail-in type contingent capital securities to be changed due to debt readjustment, within the scope permitted under the relevant laws and regulations at the time the relevant bonds are issued.
(4) The Bank shall include a plan for issuing bail-in type contingent capital securities in the annual operation plan. Issuance details such as amount, timing, reason, etc. shall be consulted with the Ministry of Economy and Finance prior to each issuance.
