Just the Rules in Korean are formal. This English translation of this Rules is not formal and it is given to informational function just. The Ministry of Strategy and Finance just isn’t accountable for the correctness for this English translation, as well as the audience is preferred to mention to your original papers in Korean. The original Korean documents shall be controlling if this English translation is different from or inconsistent with the original Korean documents.
Guidelines when it comes to continuing State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Function)
The objective of these guidelines is always to established the range of qualified financial obligation, the range regarding the guarantee, the procedures for the guarantee along with other information on the continuing state guarantee system pursuant to your В“Approval regarding the State Guarantee for the Foreign Currency Debt of Domestic Banks owed to Non-ResidentsВ” passed by the National Assembly (the В“ system В”, in addition to state guarantee under such system, the В“ State Guarantee В”), relative to the nationwide Finance Act, Enforcement Decree associated with nationwide Finance Act therefore the Rules when it comes to handling of State Guarantees.
Article 2 (Definitions)
| (1) | В“ Domestic Bank В” means some of the banks that are following (i) Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank, Korea Exchange Bank, Citibank Korea, Standard Chartered First Bank Korea, Pusan Bank, Daegu Bank, Kwang Ju Bank, Kyongnam Bank, Jeonbuk Bank and Jeju Bank, each founded beneath the Banking Act; (ii) the Korea developing Bank established underneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established underneath the Industrial Bank of Korea Act; (iv) the Export-Import Bank of Korea established underneath the Export-Import Bank of Korea Act; (v) nationwide Agricultural Cooperative Federation established beneath the Agricultural Cooperatives Act; and (vi) National Federation of Fisheries Cooperatives established under the Fisheries Cooperatives Act. В“Domestic BankВ” includes international branches of a Domestic Bank. |
| (2) | В“ В” that is non-resident В“non-residentВ” (including branches of international banks situated in Korea) as defined in Article 3, Paragraph 1, Subparagraph 13 regarding the Foreign Exchange Transactions Act. |
| (3) | В“ Guarantee Obligation В” means the responsibility of this Republic of Korea (the В“RepublicВ”) incurred due to their state Guarantee of this Eligible forex financial obligation as defined in Article 3 associated with the Rules. |
Article 3 (Qualified Debt)
Debt denominated in foreign exchange, granted or lent (including extensions of readiness) with a Domestic Bank between October 20, 2008 and June 30, 2009 and owed 
to a Non-resident (the В“ Eligible Foreign Currency Financial obligation В”) will undoubtedly be qualified to receive the State Guarantee. Foreign exchange deposits and debt that is subordinated never be qualified to receive the State Guarantee.
Article 4 (Maximum quantity of Guarantee)
| (1) | The Minister of Strategy and Finance may issue their state Guarantee for the Eligible Foreign Currency Debt of Domestic Banks up to your maximum that is aggregate quantity of US$100 billion or perhaps very same thereto (the В“ Aggregate Maximum Guarantee Amount В”). |
The Minister of Strategy and Finance shall make sure that the guarantee that is outstanding for every single Domestic Bank shall perhaps not meet or exceed the applicable limitation for such Domestic Bank as established in Schedule 1 hereto (the В“ Individual optimum Guarantee Amount В”); supplied , nonetheless , that the Minister of Strategy and Finance may adjust the in-patient optimum Guarantee Amount for Domestic Banking institutions if
such modification is regarded as necessary after consideration of domestic and international economic and money market conditions, performance of covenants by Domestic Banking institutions because set forth within the relevant Guarantee Approval Notices issued pursuant to Article 3 associated with the guidelines for the handling of State Guarantees along with other appropriate facets; supplied further that the aggregate outstanding level of State Guarantee for several Domestic Banks shall perhaps maybe not go beyond the Aggregate Maximum Guarantee Amount after such modification.
| (3) | For purposes of determining if the outstanding level of guarantees will not meet or exceed the Aggregate Maximum Guarantee Amount and Individual optimum Guarantee Amount because set forth in Paragraphs (1) and (2) above, correspondingly, the aggregate outstanding guarantee quantity for many Domestic Banking institutions together with outstanding guarantee quantity for every single Domestic Bank shall be determined in line with the daily stability regarding the amount of the key level of Guaranteed financial obligation (as defined below) and accrued interest (including any default interest and associated costs) on such major amount. |
Article 5 (Term associated with the Guarantee)
| (1) | The Minister of Strategy and Finance can set the word of this State Guarantee, which will be within 36 months through the initial effective date of this Eligible Foreign Currency Debt (in the event of an expansion of readiness, the effective date of these expansion). |
| (2) | The State Guarantee shall succeed just regarding the re re re payment responsibilities beneath the Guaranteed financial obligation that are payable (at readiness, on scheduled repayment dates, by acceleration or elsewhere) on or before June 30, 2012. |
Article 6 (Application when it comes to Guarantee)
| (1) | A Domestic Bank applying for the State Guarantee (the В“ В” that is applicant can make an application for hawaii Guarantee inside the Individual optimum Guarantee Amount applicable to such Applicant. |
So that you can make an application for the State Guarantee prior to Paragraph (1) above, the Applicant shall finish the В“Application for Guarantee Approval (solitary Debt)В” within the type connected hereto as Form 1 and submit it to your Minister of Strategy and Finance; offered , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” within the type connected hereto as Form 2 for applications concerning short-term loans, instantly loans, commercial paper along with other financial obligation which are determined to be perhaps maybe maybe not suited to single-debt application (A Monthly Application for Guarantee Approval for just about any thirty days will be submitted no later on than the 25 th time associated with preceding month; supplied, but, that the Minister of Strategy and Finance may set an alternative deadline when it comes to very first Monthly Application for Guarantee Approval).
