Allow me to tell about Korean relationship guidelines
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Just the Rules in Korean are formal. This English translation of this Rules is perhaps not formal and it is given to informational purpose just. The Ministry of Strategy and Finance is certainly not in charge of the correctness of the English interpretation, and also the audience is recommended to refer towards the 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 for the continuing 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 scope of qualified financial obligation, the range of this guarantee, the procedures for the guarantee as well as other information on the state guarantee system pursuant towards the В“Approval associated with the State Guarantee for the Foreign Currency Debt of Domestic Banks owed to Non-ResidentsВ” passed by the National Assembly (the В“ system В”, plus the state guarantee under such system, the В“ State Guarantee В”), according to the National Finance Act, Enforcement Decree of this nationwide Finance Act plus 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 beneath the Korea Development 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 the Domestic Bank. |
| (2) | В“ Non-resident В” means В“non-residentВ” (including branches of foreign banks situated in Korea) as defined in Article 3, Paragraph 1, Subparagraph 13 associated with Foreign Exchange Transactions Act. |
| (3) | В“ Guarantee Obligation В” means the responsibility of this Republic of Korea (the В“RepublicВ”) incurred because of their state Guarantee of this Eligible forex financial obligation as defined in Article 3 of this Rules. |
Article 3 (Qualified Debt)
Financial obligation denominated in foreign exchange, given or lent (including extensions of readiness) by 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”) is likely to be entitled to the State Guarantee. Foreign exchange deposits and debt that is subordinated never be entitled to the State Guarantee.
Article 4 (Maximum level 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 aggregate optimum outstanding number 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 the outstanding guarantee amount for every single Domestic Bank shall maybe not go beyond the relevant restriction for such Domestic Bank as set forth 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 into the guarantee that is applicable Notices issued pursuant to Article 3 for the guidelines for the handling of State Guarantees as well as other appropriate facets; supplied further that the aggregate outstanding number of State Guarantee for several Domestic Banking institutions shall perhaps maybe not surpass the Aggregate Maximum Guarantee Amount after such modification.
| (3) | For purposes of determining whether or not the outstanding number of guarantees will not surpass the Aggregate Maximum Guarantee Amount and Individual Maximum Guarantee Amount because set forth in Paragraphs (1) and (2) above, correspondingly, the aggregate outstanding guarantee quantity for many Domestic Banking institutions as well as the outstanding guarantee amount for every single Domestic Bank shall be determined on the basis of the day-to-day stability for the amount of the key quantity of Guaranteed financial obligation (as defined below) and accrued interest (including any standard interest and associated expenses) on such major amount. |
Article 5 (Term regarding the Guarantee)
| (1) | The Minister of Strategy and Finance can set the expression of this State Guarantee, which will probably 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 re re payment responsibilities underneath the debt that is guaranteed are payable (at readiness, on planned repayment dates, by acceleration or else) 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 complete the В“Application for Guarantee Approval (solitary Debt)В” within the type connected hereto as Form 1 and submit it towards the Minister of Strategy and Finance; supplied , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” when you look at the form connected hereto as Form 2 for applications associated with short-term loans, instantly loans, commercial paper as well as other financial obligation which are determined become maybe not ideal for single-debt application (A Monthly Application for Guarantee Approval for just about any thirty days will probably be submitted no later than the 25 th day associated with the preceding thirty days; supplied, nonetheless, that the Minister of Strategy and Finance may set another type of deadline for the very very very first Monthly Application for Guarantee Approval).
