REGULATION

ON

SUPERVISION OF CREDIT INFORMATION BUSINESS

Regulation on Supervision of Credit Information Business

CONTENTS

I.	General Provisions

§1.	Purpose

§2.	Definitions

II.	Permission and Supervision of Credit Information Business

Section 1. Approval of Conducting Concurrent Business

§3.	Approval of Conducting Concurrent Business(es)

Section 2. Credit Investigation, Credit Inquiry and Debt Collection Activity

§4.	Maximum Fees

§5.	Data Processing & Communication Facilities

§6.	Permitted Tasks by Minor(s) After Employment or Appointment

Section 3. Credit Rating Business

§7.	Electronic System and Data Management System

§8.	Requirements for Credit Rating Company

§9.	Supervision of Credit Rating Company

III.	Administration of Credit Information

§10.	Scope of Public Organization

§11.	Registration, Modification and Administration of Information

§12.	Notification of Registration of Information on Credit Delinquency

§13.	Method of Provision and Utilization of Information

§14.	Verification of Clients Requesting Personal Credit Information

§15.	Request for Correction of Credit Information

§16.	Maintaining Accuracy of Credit Information

§17.	Treatment of the Information In Discontinuance of Business

IV.	Supplementary Provisions

§18.	Internal Management Provisions

§19.	Business Operation Report

§20.	Application for Approval

§21.	Exclusion Clause for Credit Rating Companies

§22.	Specifics

Addenda

Enacted on July 19, 2001 FSC 2001-50

Amended on January 4, 2002 FSC 2001-113

Amended on July 4, 2002 FSC 2002-42

Amended on march 19, 2003 FSC 2003-19

CHAPTER I.

GENERAL PROVISIONS

§1. Purpose

The purpose of this Regulation is to prescribe details necessary for enforcing matters under the jurisdiction of the Financial Supervisory Commission (hereinafter, "the FSC") pursuant to the Act on the Utilization and Protection of Credit Information (hereinafter, "the Act"), its enforcement decree (hereinafter, "the Decree") and its enforcement regulation (hereinafter, "the Enforcement Regulation").

§2. Definitions

The terms used herein shall be defined in conformity with the provisions of the Act and the Decree.

CHAPTER II.

PERMISSION AND SUPERVISION OF CREDIT INFORMATION BUSINESS

Section 1.

Approval of Conducting Concurrent Business

§3. Approval of Conducting Concurrent Business(es)

(1) Upon the submission of an application for conducting concurrent business (es) by a credit information company pursuant to Article 10p of the Act, the FSC shall review the application based on the following standards, and then approve.

1. That the business (es) in question must not be in conflict with any relevant statutes;

2. That the business (es) in question must be related to credit information business; and

3. That the credit information company must be capable of conducting the business (es) in question, especially by maintaining the concurrent business management system.

(2) Upon the submission of an application for holding a concurrent position by a standing executive officer of a credit information company pursuant to Article 10p of the Act, the FSC shall review the application based on the following standards, and then approve.

1. That the holding a concurrent position by the standing executive officer must not be in conflict with any of relevant statutes;

2. That the holding a concurrent position by the standing executive officer must be essential for business rationalization or restructuring of the credit information company and other related companies.

Section 2.

Credit Investigation, Credit Inquiry and Debt Collection Activity

§4. Maximum Fees

Maximum fees which a credit information company may demand from a user pursuant to Article 7 of the Act are set forth in <Appendix Table 1>.

§5. Data Processing & Communication Facilities

"Data processing & communication facilities determined and published by the FSC" under the provisions of Article 4-2 paragraph (1) subparagraph 1 item b and Article 9 paragraph (8) subparagraph 2 of the Decree are set forth in <Appendix Table 2>, which mean facilities enabling efficient processing of credit information, given the scale and scope of the credit inquiry and credit information collection activities.

§6. Permitted Tasks by Minor(s) After Employment or Appointment

The term "Tasks mandated by the FSC" under Article 9 paragraph (1) subparagraph 1 of the Act means any one of the following subparagraphs.

1. assistance of works concerning preparation, input and output of data necessary for the internal processing of credit information; and

2. inspection or receipt of credit information held by public institution(s) under Article 14 paragraph (1) of the Act, and whose disclosure or provision to third party(s) will not cause any damages to the subject of credit information.

Section 3.

Credit Rating Business

§7. Electronic System and Data Management System

"Electronic system and data management system designated and published by the FSC" under Article 4-2 paragraph (1) subparagraph 3 item b of the Decree mean the electronic system and data management system in <Appendix Table 3>, which enable efficient credit rating, given the scale and scope of rating business.

§8. Requirements for Credit Rating Company

(1) "Documents including matters designated by the FSC for the investigation of the credit rating company's capability ", which shall be appended to a credit rating report produced by a credit rating company pursuant to Article 9-2 paragraph (4) of the Act, mean the documents of following subparagraphs.

1. Documents stating the present condition of a client, such as financial status and business performance, as well as the future prospect in terms of the business risks, management risks, and financial risks together with the opinion on its total credit standing (Rating Rationale); and,

2. Documents stating the principal and interest redemption rates by such categories as year, business enterprise, and credit rating grade together with the credit rating undertaken by a credit rating company (Credit Rating Performance Record); and,

3. Documents stating the fluctuations of credit ratings for every credit rating undertaken by the credit rating company between the beginning of the year and the end of the year (Credit Rating History Table); and.

4. Documents stating any defaults (including failure in timely principal and interest redemption, commencements of corporate liquidation procedures, filing for composition and affirmative decisions thereof, or any cases where Bankruptcy Deferment Accord is applicable) by business categories and rating categories during the relevant period (Average Accumulative Default Rate Table).

(2) Documents which a credit rating company must submit to the FSC pursuant to Article 9-2 paragraph (5) of the Act and keep in the Korea Stock Exchange (hereinafter, "the KSE") and the Korea Securities Dealers Association (hereinafter, "the KSDA") for public disclosure under the Securities and Exchange Act mean documents mentioned in the Article 8 paragraph (1), subparagraphs 2 through 4.

(3) Deadlines for submission and disclosure of documents pursuant to paragraph (2) are as follows:

1. Documents under paragraph (1) subparagraph 2 must be drafted at the end of each quarter, and submitted and disclosed within ten days thereafter; and

2. Documents under paragraph (1) sub-paragraphs 3 and 4 must be drafted at the end of each quarter, and submitted and disclosed within twenty days thereafter.

(4) The FSC shall delegate to the Governor of the Financial Supervisory Service (hereinafter, "the Governor") the authority concerning the receipt of documents pursuant to paragraph (2).

(5) Drafting methods for documents under paragraph (1) sub-paragraphs 2 through 4 are set forth in <Appendix Table 4> through <Appendix Table 6>.

§9. Supervision of Credit Rating Company

(1) The Governor may order the credit rating company recording the highest annual average default point, which is produced by weighting the credit ratings and the period of time taken to change the credit ratings, to refrain from making another credit-rating, for no more than three months, on securities newly issued by the corporations subject to its credit rating. The Governor may, however, either withhold such a refrain order, shorten the period of refrain, or extend the period of refrain up to six months, in consideration of the differences in annual average default point from those of other credit rating companies.

(2) A credit rating company must evaluate its annual average default point pursuant to paragraph (1) as of the end of each year, and report to the Governor within twenty days thereafter.

(3) The annual average default point under paragraph (1) shall be evaluated in accordance with <Appendix Table 7>.

CHAPTER III.

ADMINISTRATION OF CREDIT INFORMATION

§10. Scopes of Public Organizations

The scopes of "institution(s) designated by the FSC under Article 7 subparagraphs (1) through (3) of the Decree, "person(s) designated by the FSC" under Article 9 paragraph (6) of the Decree, and "financial institutions designated by the FSC" under Article 9 paragraph (8) subparagraph (1) of the Decree are set forth in <Appendix Table 8>.

§11. Registration, Modification and Administration of Information

(1) Financial institutions under Article 9 paragraph (6) of the Decree must process their credit information into a form manageable under the 'intensive administration and utilization' pursuant to Article 9 paragraph (5) of the Decree, and must have it registered with a comprehensive credit information collection agency under Article 17 paragraph (2) of the Act.

(2) Specific standards for the registration and utilization of the credit information, which is under the intensive administration and utilization by a comprehensive credit information collection agency pursuant to paragraph (1), are set forth in <Appendix Table 9>, and a credit information council pursuant to Article 17-2 of the Act must determine the specific types of credit information to be registered with a comprehensive credit information collection agency and the administration period in conformity with <Appendix Table 9> and paragraph (4).

(3) Periods for registration or modification of registration regarding credit information to the credit information collection agency pursuant to Article 17 of the Act shall be within thirty days from the date the event(s) for registration occurs.

(4) Information on credit delinquency, except such information on dishonored notes as registered with a credit information collection agency and a credit information company, shall be subject to administration for maximum five years from the date the event(s) for termination of delinquency occurs, and if seven years lapse from the date the event(s) for registration occurs, the date on which seven years lapse shall be viewed as the date the event(s) for termination of delinquency occurs.

(5) Information on credit delinquency, except information on dishonored notes, shall not be registered with a credit information collection agency or a credit information company after the lapse of period applicable under each of the following subparagraphs.

1. Seven years from the occurrence of credit delinquency; and

2. Effective date of Statute of Limitations for credits on which the right to claim has already expired.

(6) The administration period for information on credit delinquency, which a credit information provider, user or a credit information company obtains from a credit information collection agency, shall be determined in conformity with the administration period set by the credit information collection agency providing the information.

§12. Notification of Registration of Information on Credit Delinquency

(1) Any person intending to register bad credit history with a credit information collection institution shall notify the borrower of its intention in advance by one month prior to the date of registration in accordance with the <Annexed Form 9>.

(2) The scope of persons capable of notifying the borrower in advance before the registration in accordance with the proviso of Article 12 paragraph (1) of the Rules is as provided in the <Annexed Table 10>.

(3) In the event of a cause for the registration applicable under the proviso of Article 12 paragraph (1) of the Rules against a business or a person, an advance notice may be made to the borrower prior to the registration.

§13. Method of Provision and Utilization of Information

Any Credit information provider or user that provides credit information to a credit information collection agency or who utilizes credit information shall provide or utilize it through electronic medium or in a written format as prescribed by the credit information collection agency.

§14. Verification of Clients Requesting Personal Credit Information

(1) In the event a credit information company, a credit information collection agency, a credit information provider or user (hereinafter, "credit information companies, etc") provide personal credit information to a client, it must receive from the client a written request describing personal information such as name, identification number, and address (in case of a corporation, its corporate name, the name of its representative, and the location of its head office) as well as the purpose of the request for the information, and documents verifying the purpose of the request, and it must also verify the identity of the client based on the underlying certificates and documents.

1. If the client is an individual, his/her resident identification card, driver's license, or any other identification cards showing his/her name, resident identification number, address, and photograph; and

2. If the client is a corporation, documents verifying its representative(s) (or other persons delegated by such representative(s)) and the identification card thereof.

(2) In the event a credit information collection agency provides personal credit information to a credit information provider or user, or if a credit information company provides personal credit information in connection with its business under Article 2 subparagraph (8) of the Act, the possession of records under Article 20 paragraph (2) of the Act shall be regarded as the receipt verification under paragraph (1).

§15. Request for Correction of Credit Information

(1) When intending to request credit information companies, etc to correct information, the subject of credit information must submit a written application in which the information to be corrected and the grounds for correction.

(2) Credit information companies, etc which have received requests for corrections may ask the subject of the credit information to present evidences necessary for investigation and confirmation.

§16. Maintaining Accuracy of Credit Information

When necessary for verifications following the correction request(s) by the subject(s) of credit information, a credit information collection agency or a credit information company may require the credit information provider(s) or user(s) of any data needed for confirming the accuracy of the information registered.

§17. Treatment of the Information In Discontinuance of Business

In the event a credit information collection agency or a credit information company intends to discontinue its business, it shall dispose of, eliminate, or discard materials under the following subparagraphs in the presence of regulator designated by the Governor:

1. Credit information files and credit information administration books;

2. Credit information data base; and

3. Any other files containing credit information.

CHAPTER IV.

SUPPLEMENTARY PROVISIONS

§18. Internal Management Provisions

Pursuant to Article 20 of the Act, credit information companies, etc shall have their internal management guidelines providing the matters in the following subparagraphs.

1. Specific procedures of collecting, processing, and utilizing the credit information;

2. Types and scopes of the credit information subject to intensive administration and utilization;

3. Technological and physical security measures for an electronic system processing the credit information;

4. Procedures of handling the request(s) for inspection(s) and correction(s) of the credit information;

5. A monitoring system that is capable of ensuring accurate and prompt registration of credit information;

6. Procedures of examination over the credit information user(s)'s compliance with the Act, the Decree, the Enforcement Regulation or this Regulation, and procedures of sanctions in case of inconformity therewith (limited to the person(s) under Article 4 paragraph (4) subparagraph (1) of the Act); and

7. Credit records recovery assistance procedures for bad credit holders (restricted to the institutions lending to individuals among the financial institutions provided under Article 9 paragraph (6) of the Decree);

8. Procedures implementing other specific matters prescribed by the Act, the Decree, the Enforcement Regulation, or this Regulation.

§19. Business Operation Report

(1) A credit information collection agency or a credit information company shall submit the business operation report to the Governor on a quarterly basis.

(2) Details of the business operation report under paragraph (1), including the format and time of submission, shall be prescribed by the Governor.

§20. Application for Approval

(1) Any person falling under one of the following subparagraphs shall submit to the FSC an application for the corresponding approval or a request for correction of the credit information in conformity with <Form Sheet of Appendix Table 1> through <Form Sheet of Appendix Table 3>.

1. A person who intends to obtain the license pursuant to Article 4 paragraph (4) of the Act;

2. A person who intends to obtain authorization pursuant to Article 10p of the Act: or

3. A person who intends to request for correction(s) pursuant to Article 25 paragraph (4) of the Act.

(2) The application and consent pursuant to Article 4 paragraphs (1) and (5) of the Decree, Article 9 paragraph (3) and Article 12 paragraph (1) of the Decree shall be written in conformity with <Form Sheet of Appendix Table 4> through <Form Sheet of Appendix Table 7>.

(3) The report on suspension or discontinuance of credit information business pursuant to Article 9 of the enforcement regulation shall be prepared in conformity with the <Form Sheet of Appendix Table 8>.

§21. Exclusion Clause for Credit Rating Companies

Articles 5, 6, 11 through 16, 18 and Article 20 paragraph (1) subparagraph (3) shall not be applicable to credit rating companies (as to persons permitted to conduct credit information business in addition to credit rating business, the exclusion shall only be applicable to its credit rating business).

§22. Specifics

The Governor may determine the specifics necessary for the enforcement of this Regulation.

Addenda

§1. Enforcement Date

This Regulation shall be effective on the date of promulgation. However, Article 11 paragraph (4) shall be effective on August 1. 2001, and Article 12 paragraph (1) on October 1. 2001.

§2. Interim Measures

(1) The measures taken prior to the effective date of this Regulation pursuant to previous regulations of relevance shall be deemed compliant with this Regulation.

(2) Notwithstanding Article 11 paragraph (4) of the Act, as for information on dishonored notes whose event(s) for registration occurs before January 2. 2001., the date on which ten years lapse from its occurrence shall be deemed the date for termination of delinquency.

§3. Repeal of Other Provisions

From the effective date of this Regulation, the Regulation on Credit Information Operation shall be repealed, and Part VII. Chapter 4 (Articles 7-28 through 7-31) of the Regulation on Securities Business shall be deleted.

§4. Relationship with Other Provisions

In the event other regulations make any reference to the "credit rating company" which has been designated by the Governor as a rating agency specialized in evaluating unsecured bonds pursuant to Part VII. Chapter 4 of the Regulation on Securities Business at the time when this Regulation is in effect, such a reference shall be viewed as mentioning a credit rating company which is permitted by the FSC pursuant to Article 4 and Article 4-2 of the Act on the Utilization and Protection of Credit Information.

Addendum

(January 4, 2002)

This Regulation shall be effective on the date of promulgation.

Addendum

(July 4, 2002)

This Regulation shall be effective on the date of promulgation.  The Annex Table 9 of the amended provisions of Article 12 shall enter into force on October 1, 2002.

Addendum

(March 19, 2003)

This Regulation shall be effective on the date of promulgation.