REGULATION ON INTEREST RATE FOR LATE PAYMENT UNDER ARTICLE 9 PARAGRAPH (2) OF THE ENFORCEMENT DECREE OF THE ACT CONCERNING THE USURY BUSINESS REGISTRATION AND CONSUMER PROTECTION

Regulation on Interest Rate for Late Payment…

CONTENTS

§1. Purpose

§2. Definition

§3. Overdue Interest Repayment

Addenda

Enacted on November 13, 2002 FSC 2002-75

§1. Purpose

The purpose of this Regulation is to prescribe matters necessary for the undertaking of the businesses under the jurisdiction of the Financial Supervisory Commission pursuant to Article 15 of the Act Concerning the Usury Business Registration and Consumer Protection (hereinafter, the Act") and Article 9 of the Enforcement Decree of the Act (hereinafter, "the Decree").

§2. Definition

The term "interest accrued on late payment" used herein this Regulation means the difference between the annual percentage rate referenced to in the usury agreement extended by creditor financial institution and the overdue interest rate under Article 9 subparagraph 2 of the Decree.

§3. Overdue Interest Repayment

The overdue interest rate under Article 9 subparagraph 2 of the Decree means the usury interest rate integrating the overdue interests accrued, the annual percentage of which is 12%.

Addenda

(November 13, 2002)

§1. Enforcement Date

This Regulation shall be effective on the date of promulgation.

§2. Applicable Cases

This Regulation shall apply to the new usury agreements reached on and after the date of enforcement.