I’d like to tell about Korean relationship guidelines
Just the Rules in Korean are formal. This English translation associated with the Rules is certainly not formal and is given to informational function only. The Ministry of Strategy and Finance is certainly not accountable for the correctness for this English interpretation, as well as the reader is preferred to refer towards the documents that are original Korean. If this English interpretation differs from the others from or inconsistent aided by the initial Korean documents, the initial Korean papers will be controlling.
Guidelines when it comes to State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Purpose)
The objective of these guidelines is always to established the range of eligible financial obligation, the range associated with 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”), according to the nationwide Finance Act, Enforcement Decree for the 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 after banks: (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 beneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established beneath 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 for the forex Transactions Act. |
| (3) | В“ Guarantee Obligation В” means the responsibility associated with the Republic of Korea (the В“RepublicВ”) incurred due to their state Guarantee of this Eligible Foreign Currency financial obligation as defined in Article 3 associated with the Rules. |
Article 3 (Qualified Debt)
Financial obligation denominated in foreign exchange, granted or lent (including extensions of readiness) by a Domestic Bank between 20, 2008 and June 30, 2009 and owed to a Non-resident (the В“ Eligible Foreign Currency Debt В”) will be eligible for the State Guarantee october. Foreign exchange deposits and subordinated financial obligation shall never be qualified to receive the State Guarantee.
Article 4 (Maximum quantity of Guarantee)
| (1) | The Minister of Strategy and Finance may issue hawaii Guarantee for the Eligible Foreign Currency Debt of Domestic Banks up into the maximum that is aggregate level of US$100 billion or even very same thereto (the В“ Aggregate optimum Guarantee Amount В”). |
The Minister of Strategy and Finance shall make certain that the guarantee that is outstanding for every single Domestic Bank shall maybe maybe perhaps not surpass the relevant limitation for such Domestic Bank as established in Schedule 1 hereto (the В“ Individual optimum Guarantee Amount В”); supplied , but , 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 monetary 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 for the guidelines for the handling 
of State Guarantees and other relevant factors; supplied further that the aggregate outstanding level of State Guarantee for many Domestic Banks shall maybe perhaps maybe not go beyond the Aggregate Maximum Guarantee Amount after such adjustment.
| (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 several Domestic Banking institutions additionally the outstanding guarantee quantity for every single Domestic Bank shall be determined on the basis of the day-to-day balance for the amount of the main quantity of Guaranteed financial obligation (as defined below) and accrued interest (including any standard interest and associated costs) on such amount that is principal. |
Article 5 (Term regarding the Guarantee)
| (1) | The Minister of Strategy and Finance can set the definition of associated with State Guarantee, which will be within 36 months through the initial date that is effective of 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 payment responsibilities underneath the Guaranteed Debt that are payable (at readiness, on planned due dates, by acceleration or perhaps) 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“ Applicant В”) can submit an application for their state Guarantee in the Individual optimum Guarantee Amount applicable to such Applicant. |
So that you can submit 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” into the type connected hereto as Form 2 for applications associated with short-term loans, instantly loans, commercial paper as well as other financial obligation which can be determined become perhaps maybe not suited to single-debt application (A Monthly Application for Guarantee Approval for almost any thirty days will be submitted no later on than the 25 th time of this preceding thirty days; supplied, nevertheless, that the Minister of Strategy and Finance may set another type of deadline for the first Monthly Application for Guarantee Approval).
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