1. Reasons for Amendment

Following the revision of the Banking Act (promulgated on Mar. 21, 2023 and to enter into force on Sep. 22, 2023), this amendment aims to specify matters entrusted by Presidential Decree in the Act and improve related systems, such as the criteria for obtaining approval from the Financial Services Commission in the case of transfer/acquisition of a business.

2. Major Provisions 

A. Provide criteria for obtaining approval in the case of partial closure of business

Specify the criteria for “the major part” that must be approved by the Financial Services Commission in the case of partial closure of business as “at least 10/100 of the total assets or gross profit of the business division as of the end of the latest business year.”

B. Provide criteria for obtaining approval in the case of business transfer/acquisition

Amend the criteria for “the major part” that must be approved by the Financial Services Commission in the case of business transfer/acquisition as “at least 10/100 of the total assets, gross profit, or total liabilities of the business division as of the end of the latest business year.”

C. Specify the criteria for the amount subject to reporting at regular shareholders' meeting

As the Banking Act was revised to report the status of loan readjustment for users of loans and payment guarantees exceeding a certain amount prescribed by Presidential Decree by the bank to regular general meetings of shareholders, specify “a certain amount prescribed by Presidential Decree” as 10 billion won. 

D. Specify the criteria for imposing administrative fines

In a case where a bank fails to report to the regular general meeting of shareholders in violation of Article 43-4 (1) of the Banking Act or reports false information, specify the standard for administrative fines as up to 30 million won.